Risk Culture, A Necessity for the Risk Management Process Development in Public Institutions

The profound economic and financial crisis that has globally manifested recently has highlighted the managers and systems management’s inability to identify in the early stage, the existing dangers and to design strategies to reduce the negative effects. Organizations that have developed a culture of risk awareness and a high level of risk, have survived in a changing economic environment by reducing waste, cost reduction and strategic flexibility. In the post crisis period, many organizations are focusing all their energy to survive in an uncertain environment, trying to reduce losses, reduce costs and to achieve their objectives. When attention is directed to the risks, the concerns are often focused more for improving existing risk management system and less on developing a risk culture within the institution. Leadership can support the risk culture to influence a proper behavior, which helps the organization to meet its goals and embody its values.financial control, internal audit, risk management, risk culture.