Does the corporate culture encourage open communication upwards to senior levels?
There is often a sense of strict hierarchies within certain entities that may discourage lower level managers to bring up concerns to senior management. In order for a risk management program to be effective, it is extremely important that the entity inspires a culture that fosters open communication between all management levels. Some participants suggested that promotions of employees created problems for some entities because managers assumed the person taking over their role would inherit their issues and concerns. The first step to establishing this culture is have a senior management team that is focused on clear, open communication, and who is willing to address problems before they come up with answers. Senior management should raise their issues and concerns with risk managers instead of attempting to solve all problems on their own, which could lead to strategic misalignment. Lower level managers feel more comfortable knowing that their senior management is willing to express
