How is 'risk culture' defined within an organization?

'Risk culture' within an organization is defined as the values and behaviors related to risk. This encompasses how employees and management perceive risk, their attitudes toward taking risks, and the overall environment that encourages or discourages risk-related discussions and decision-making.

An effective risk culture means that there is a shared understanding of risk across all levels of the organization, which influences how individuals approach risk management in their daily operations. This cultural framework shapes risk awareness and encourages a proactive stance toward identifying, assessing, and managing risks in alignment with the organization's objectives.

In contrast, the other options focus on specific aspects of risk management rather than on the overarching cultural attitudes that contribute to an organization's approach to risk. For instance, financial measures assess the outcomes and performance related to risk, policies constitute the formalized procedures for managing risks, and technological tools provide the means for risk assessment but do not address the collective mindset that defines how risk is perceived and approached within the organization.