Who is primarily responsible for identifying and managing organizational risks?

The understanding that all employees share responsibility for identifying and managing organizational risks is fundamental to a robust risk management culture within any organization. While specialized teams like the IT Department, Compliance Team, and Risk Management Team play crucial roles in their respective areas, the involvement of all employees enhances the effectiveness of risk management.

Every employee, regardless of their position, can recognize potential risks that may arise in their daily operations. Their frontline experience puts them in a unique position to identify operational vulnerabilities, compliance issues, safety hazards, and even cybersecurity threats. When a culture of awareness and accountability is fostered, employees feel empowered to report risks, thus contributing to a more comprehensive risk assessment process.

Moreover, the idea of "all employees" also supports the principle of decentralization in risk management, where individuals at all levels of the organization are trained and encouraged to participate actively in identifying risks. This approach not only aids in early detection but also ensures that risk management is an ongoing process integrated into the organizational culture rather than a task relegated solely to specific teams.