Strengthening Risk Culture Through Collaborative Stress Testing

Strengthening Risk Culture Through Collaborative Stress Testing

According to a Risk Management Magazine article by Adam Ennamli, risk culture refers to the collective behaviors, attitudes, and shared mindsets surrounding risk, which can be the deciding factor between an organization that falters during a crisis and one that adapts and overcomes. 

However, this culture cannot be instilled solely through theory. Risk and compliance leaders must proactively test and evolve their organization’s cultural resilience before it’s put to the test by a real-world disruption. Ennamli says the key is to move beyond traditional top-down simulations and engage in collaborative, transparent, and dynamic exercises that involve the entire organization.

Instead of issuing directives or conducting siloed assessments, effective risk and compliance leaders create shared learning environments where teams co-develop their response capabilities. Exercises such as pausing critical business processes, conducting analog tabletop simulations, and running unannounced but transparent crisis scenarios help expose real-time behavioral patterns, communication breakdowns, and gaps in adaptability. These activities surface unspoken assumptions, reveal trust networks, and help teams identify both technical and cultural dependencies that may hinder resilience.

The article cites case studies from organizations such as NASA and historical crises, including the BP oil spill and the Northeast blackout, to highlight the importance of human-in-the-loop adaptability and the dangers of relying too heavily on rigid routines or technology. Equally critical is recognizing and amplifying emergent leadership during these simulations, reinforcing behaviors that foster trust and collaboration.

For risk and compliance professionals, testing systems often isn’t enough. Risk culture must be transformed by embedding resilience into the organization’s fabric through inclusive, ongoing experimentation, enabling it to endure under pressure.