Are There Any Organizational “blind Spots” Warranting Attention?

Preffered Answer:

Cultural issues and dysfunctional BEHAVIOR can undermine the effectiveness of RISK management and lead to inappropriate risk taking or the undermining of established policies and processes. For example, lack of transparency, conflicts of interest, a shoot-the-messenger ENVIRONMENT and/or unbalanced COMPENSATION STRUCTURES may encourage undesirable behavior and compromise the effectiveness of risk management.

Cultural issues and dysfunctional behavior can undermine the effectiveness of risk management and lead to inappropriate risk taking or the undermining of established policies and processes. For example, lack of transparency, conflicts of interest, a shoot-the-messenger environment and/or unbalanced compensation structures may encourage undesirable behavior and compromise the effectiveness of risk management.