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Risk Culture 10 Dimensions

Leaders at every level deliberately and consistently champion risk management, setting a clear tone and role-modelling appropriate risk behaviours to instil the desired risk culture throughout the entity.

Decision-Making and Challenge
There is a demonstrated willingness to proactively consider diverse viewpoints and to give and receive constructive challenge across the entity. 

Communication and Escalation
Risk issues are openly communicated across the entity, supported by an environment where people feel safe to speak up without fear of retribution.

Risk Capabilities
The level of skills and learning, well-being, processes, systems and data across the three lines of defence support effective risk management practices and behaviours.

Alignment with Purpose and Values
The entity’s espoused Purpose and Values promote and support good risk management practices and behaviours.

Risk Culture Assessment and Board Oversight
The Board has a robust approach for overseeing the assessment of risk culture in order to form a view, identify desirable changes and ensure steps are being taken to address these changes.

Risk Appetite and Strategy
Business and strategic decisions align with the Risk Appetite Statement.

Risk Governance and Controls
Across the entity there is effective oversight of risk, and risk management is supported by appropriate risk frameworks, policies, controls and reporting.

Responsibility and Accountability
Responsibilities and accountabilities for risk are clearly understood, embraced and discharged across the three lines of defence. 

Performance Management and Incentives
Good risk management behaviour is rewarded and poor risk behaviour has proportionate consequences.


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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $8.6 trillion in assets for Australian depositors, policyholders and superannuation fund members.