“Hard” versus “soft” aspects of risk management
For a risk management framework to be effective, there must be an appropriate balance in focus on both the “hard” aspects of risk management (i.e. processes and structures) and the “soft” aspects (i.e. culture and people).
For example, an organization may have highly sophisticated processes and structures established to manage risks. However, unless these structures and processes are supported by management and staff with the appropriate competencies, attitudes, and behaviors, the framework is likely to be ineffective.
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