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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, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.