SVETLOZAR KARANESHEV RISK GOVERNANCE & CULTURE SVETLOZAR KARANESHEV SVETLOZAR KARANESHEV Corporate Governance, Risk and Risk Culture, Information and Data Governance, Big Data, Data

SVETLOZAR KARANESHEV

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RISK GOVERNANCE & CULTURE SVETLOZAR KARANESHEV & STELIANA KEMCHEVA


SVETLOZAR KARANESHEV Corporate Governance, Risk and Risk Culture, Information and Data Governance, Big Data, Data Analytics and Business Intelligence. Experience: 25 years in the area of risk and finance.

As a Head of Audit he assesses the risks of the organization, audits the corporate and risk governance; strategic, control and operational management systems and function; critical business and operational processes and functions. His achievements before are in the areas of risk management; mergers, acquisitions and post-merger integration; business development; organization development, restructuring and turnaround; investment portfolio management; design and implementation of management and control systems; business process design and reengineering.

Co-Founder of the Risk Culture Lab – aimed to connect experts to build knowledge on the role of Culture and Risk Culture in organizations and society and to experiment and explore Culture and Risk Culture in the context of today's reality

[email protected]


STELIANA KEMCHEVA Culture & Team Dynamics Consultant at Eudaimonia Solutions – Co-founder of Risk Culture Lab I am passionate about designing and hosting participatory group processes which ignite team’s capacity to co-create and communicate while capitalizing on the different personalities people have. My approach follows the dance between structure and chaos, planned and emerging, knowing and sensing, intellect and emotions in a dynamic ever-changing environment. I believe that collaboration and having a shared vision are key factors for building strong organizational culture which inspires and provokes commitment.

[email protected]


THE ORGANIZATION IS...

?


THE CONTROL SYSTEM IS...


https://www.e92plus.com/docs/default-source/pdf/whitepapers/forcepoint_2016_global_threat_report_en_0.pdf






COBIT 5 FOCUSES ON RISK CULTURE


PRINCIPLE 4: ENABLING A HOLISTIC APPROACH


PRINCIPLE 4: ENABLING A HOLISTIC APPROACH


PRINCIPLE 5: SEPARATING GOVERNANCE FROM MANAGEMENT


PRINCIPLE 5: SEPARATING GOVERNANCE FROM MANAGEMENT


RISK GOVERNANCE • As part of the overall corporate

governance framework, the framework through which the board and management establish and make decisions about the bank’s strategy and risk approach; articulate and monitor adherence to risk appetite and risk limits vis-à-vis the bank’s strategy; and identify, measure, manage and control

• Risks. Risk culture is important element of risk governance.

• (BCBS corporate governance principles for banks, July 2015)

• Http://www.Bis.Org/bcbs/publ/d328.Htm

http://www.bis.org/bcbs/publ/d328.htm


WHY IS RISK CULTURE SO IMPORTANT? • All organisations need to take risks

to achieve their objectives. The prevailing risk culture within an organisation can make it significantly better or worse at managing these risks. Risk culture significantly affects the capability to take strategic risk decisions and deliver on performance promises.

Risk culture Under the Microscope Guidance for Boards https://www.theirm.org/media/885907/Risk_Culture_A5_WEB15_Oct_2012.pdf

https://www.theirm.org/media/885907/Risk_Culture_A5_WEB15_Oct_2012.pdf

https://www.theirm.org/media/885907/Risk_Culture_A5_WEB15_Oct_2012.pdf


WHAT IS RISK CULTURE?

Risk Culture are the values, beliefs, knowledge, attitudes, level of awareness, and the perceptions of risk shared by a group of people with a common goal.

It determines their collective ability to identify, discuss and react to the organization's current and future risks.


GUIDANCE ON SUPERVISORY INTERACTION WITH FINANCIAL INSTITUTIONS ON RISK CULTURE

• TONE FROM THE TOP: The board and senior management are

the starting point for setting the financial institution’s core values and expectations for the risk culture of the institution, and their behaviour must reflect the values being espoused.

• ACCOUNTABILITY: Relevant employees at all levels understand the

core values of the institution and its approach to risk, are capable of performing their prescribed roles, and are aware that they are held accountable for their actions in relation to the institution’srisk-taking behaviour. Staff acceptance of risk-related goals and related values is essential.

• EFFECTIVE COMMUNICATION & CHALLENGE: A sound risk culture promotes an environment of open communication and effective challenge in which decision-making processes encourage a range of views; allow for testing of current practices; stimulate a positive, critical attitude among employees; and promote an environment of open and constructive engagement.

• INCENTIVES: Performance and talent management encourage and

reinforce maintenance of the financial institution’s desired risk management behaviour. Financial and nonfinancial incentives support the core values and risk culture at all levels of the institution.


https://www.iia.nl/SiteFiles/Hot%20Topics%202018%2011_9_2017_digital%20version.pdf

https://www.iia.nl/SiteFiles/Hot Topics 2018 11_9_2017_digital version.pdf

https://www.iia.nl/SiteFiles/Hot Topics 2018 11_9_2017_digital version.pdf


RISK CULTURE MODELS

All models are wrong but some are useful. GEORGE BOX


RISK CULTURE MODELS


IS CULTURE REALLY THAT IMPORTANT?

“Culture eats strategy for breakfast, technology for lunch and everything else for dinner.“ – Bill Aulent, MIT Sloan School of Management.


IS CULTURE REALLY IMPORTANT TODAY COMPARED TO ALL WE NEED TO THINK OF?

“Modern humans have radically changed the way that they work and the way that they live. Companies need to change the way they manage and lead to match the way that modern humans actually work and live.“ – Brian Halligan, CEO, Hubspot


DOESN’T CULTURE HAPPEN ON ITS OWN?

“All great organization have a great culture and that happens neither by chance, nor overnight. For that to happen, culture needs to be MEASURED to be observable and then MANAGED.” – Natalia Blagoeva, Founder & Director of Eudaimonia Solutions (Zurich – Sofia) and Co-Founder of Unleash Leadership (London – Berlin – Zurich)


THE WHOLE-SYSTEM CULTURE NAVIGATOR©

WHAT IS IT?

A whole-system approach to measuring the culture of an organization so that all its elements are visible and can then be understood and managed over the short, medium and long-term.

W E G E T T O T H E C O R E


THE WHOLE-SYSTEM CULTURE NAVIGATOR©


The tool builds upon and uses at its core the state-of-the-art methodology of the Barrett Values Centre and its flagship methodologies provoking and fostering Leadership Development and Culture Transformation. In addition, it incorporates our own experience as well as other leading methodologies of our times.

It helps you identify WHAT WORKS and WHAT DOESN’T in your current organizational culture and most importantly – WHAT CAN BE DONE to make it work best, boost performance and engagement and support your strategy.


INDIVIDUAL LEVEL OF COMPETENCE BEHAVIORS PERFORMANCE

COLLECTIVE STRUCTURES & SYSTEMS PRODUCT, EQUIPMENT, ETC. BOTTOM LINE RESULTS

WHY A WHOLE-SYSTEM APPROACH?

Source: K. Wilber

LEADERSHIP CO-WORKERSHIP PERSONAL MATURITY

SHARED VALUES LIMITING BELIEFS SHARED STRATEGIC VISION

Recognizes the need for actions in all four dimensions at the same time.


WHY A WHOLE-SYSTEM APPROACH? Culture is not about putting make up and playing roles.

To make it really work for you, you need to get to the core:

(1) PEOPLE HAVE PHYSICAL, EMOTIONAL, MENTAL, SPIRITUAL NEEDS, which impact how they perform, collaborate and contribute.

(2) ORGANIZATIONS ARE LIVING SYSTEMS- complex and unpredictable, but also able to survive, adapt, evolve and thrive.

(3) THERE ARE SYMPTOMS AND PATTERNS that navigate to what works and what doesn’t and how to make things better.



PHYSICAL CONDITIONS

Workplace Quality Physical Renewal Healthy Balance

FINANCIAL STABILITY

Finance Savvy Balance of Short and Long-Term

Focus

RELATIONSHIPS Emotional Maturity

Quality of Relationships

Reasons for Cultural Entropy®

COMMUNICATIONCommunication

Quality of Questions &

Listening

WSCN© SCOPE (1 of 4)


STRUCTURE & MANAGEMENT

Roles, Structure, Symbols | Profit, Growth |Manag.

Style | Stake- holders Focus

MEASUREMENT & AWARDS Type of KPIs |

Formal & informal awards, benefits &

recognitions.

ORGANIZATIONAL LEARNING

EQ SQ, Int.Q, CQ, Coll.Q, Blinds Spots,

Mental Models, Self-Mastery,

Systems Thinking

INNOVATION & DIVERSITY

Diversity, Creativity &, Innovation, Tolerance for

Mistakes, Bottom-Up &Top-Down

Initiatives



DECISION-MAKING

Capacity | Fear-based vs.

Opportunity-based| Seniority and Rules

vs. Rightness

AUTHENTICITY & WHOLENESS Unique Authentic

Integrated Cohesive Culture vs. Strategy

FULL-SPECTRUM LEADERSHIP

Self-Leadership & Personal Entropy,

Full-spectrum Leadership

OPENNESS TO OPPORTUNITIES Mistrust vs. Trust |

Scarcity vs. Abundance | Self

vs. Others | Blame vs. Systems view| Stress vs. Balance



SUSTAINABILITY & SOCIAL RESP.

Adequacy | Making a Difference & Social

Impact | Resilience | Stakeholders

MISSION, VISION INTEGRATION

Formulation, Updating, Level of their Integration

FULL-SPECTRUM ORGANIZATION CVA, Value spread, Cultural Entropy® and related KPIs



CULTURE REQUIRES LIFE-LONG FOCUS


WSCN© PROCESS

ASSESSMENT

DEFINITION OF A TRANSFORM. PROGRAM &

COACHING

WSCN© ASSESSMENT

ANALYSIS AND REPORT

ADDITIONAL INTERVIEWS

INTERVIEWS

WORKSHOP

DESKTOP REVIEWS, RESEARCH & SETUP

DESIGN OF THE TRANSFORM.

PROGRAM

WORKSHOPS

COACHING OF TRANSFORM. CHAMPIONS

SETTING PURPOSE, STRATEGIC GOALS, ASSESSING RISKS



FUTURE-FIT

CONSCIOUS CHOICE OF DIRECTION

SUSTAINABLE RESULTS

ENGAGEMENT

PERFORMANCE

STRATEGY-FIT

WSCN© ADVANTAGES



IS IT TOO EARLY OR TOO LATE TO TALK ABOUT RISK CULTURE?

SOFIA | 15.11.2017 | WELCOME

http://bg.eudaimonia.solutions/risk-culture-lab/


THANK YOU!

We would love to hear from you!

STELIANA KEMCHEVA [email protected]

SVETOSLAV KARANESHEV [email protected]

Documents

SVETLOZAR KARANESHEV RISK GOVERNANCE & CULTURE SVETLOZAR KARANESHEV SVETLOZAR KARANESHEV Corporate Governance, Risk and Risk Culture, Information and Data Governance, Big Data, Data