In the intricate web of organisational complexities, the spectre of cultural and behavioural risk often looms large. The key to unravelling this challenge, surprisingly, isn’t found in elaborate risk management strategies, but rather, in a simple, yet profound concept: learning.
The journey begins with understanding the essence of risk. Cultural and behavioural risks, specifically, are the potential for losses caused by human behaviour that doesn’t align with an organisation’s cultural values or behavioural expectations. These risks can manifest in different forms – from minor misunderstandings to major conflicts, from individual misconduct to collective rebellion, and so on.
To navigate these risks, it’s imperative to foster an organisational learning culture. Organisational learning is the process by which new knowledge or insights are developed, potentially influencing behaviour. It’s about nurturing an environment where learning is not just encouraged, but is integral to the very fabric of the organisation.
Within this learning culture, every experience, every mistake, every success becomes a stepping stone towards growth. Employees are empowered to take risks, make decisions, and most importantly, learn from the outcomes. This isn’t about promoting reckless behaviour, but rather about fostering a mindset where failure is seen as an opportunity for learning, not a cause for punishment.
However, establishing a learning culture is not an end in itself. It’s a means to a larger end – that of mitigating cultural and behavioural risk. When learning is embedded in an organisation’s culture, it guides behaviour towards alignment with the organisation’s values and expectations. It reduces the likelihood of behaviour that poses a risk to the organisation.
The power of organisational learning extends beyond risk mitigation. It fosters innovation, encourages collaboration, and drives performance. It creates a resilient organisation, capable of adapting to change and overcoming challenges. It’s not just about learning from the past, but also about shaping the future.
In this journey towards mitigating cultural and behavioural risk, the role of decision-makers is crucial. They are the catalysts who can ignite the spark of learning, and the guardians who can sustain its flame. They have to foster an environment where learning is valued, where questioning is encouraged, where curiosity is nurtured, and where growth is celebrated.
The journey isn’t easy. It demands patience, persistence, and courage. It requires letting go of old ways of thinking and embracing new perspectives. It involves challenging norms, breaking barriers, and crossing boundaries. But the rewards are worth the effort. A learning culture doesn’t just mitigate risk; it transforms organisations.
As we reflect on this journey, let’s remember that the power of learning isn’t just in acquiring knowledge, but in applying it. It’s not just about understanding risk, but about mitigating it. It’s not just about surviving challenges, but about thriving amidst them. As decision-makers, let’s commit to fostering a learning culture, and let’s embark on this exciting journey towards mitigating cultural and behavioural risk.
Reference:
Argyris, C., & Schön, D.A. (1978). Organizational learning: A theory of action perspective. Addison-Wesley.
