Managing Risks: Culture Matters More Than Rules
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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.
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