Managing Risks: Culture Matters More Than Rules

Micro-regulation is not the most effective way to manage risks and improve services. The best guarantee of high standards is ethics-based risk control, underpinned by rules-based codes. Formal risk management systems can encourage a box-ticking mentality, threaten internal and external relationships, and — in the literal sense of the word — demoralize people. The dangers are likely to be greatest where stakeholders have a strong emotional investment in self-regulation and ethics-based risk management.