Key risk indicators and risk culture in a South African insurance organisation
Bezuidenhout (Naude), Christine
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The study aims to explore the risk culture maturity at different management levels of a South African insurance company, to gain insight into Key Risk Indicators (KRIs), and to examine the connection between the level of risk culture maturity and the awareness and use of KRIs. No study could be found in the literature that has explicitly explored the connection between KRIs and risk culture. The Risk Culture Questionnaire (UARM RCQ-2016) of the Centre for Applied Risk Management (UARM) of the North-West University was used as the research instrument. Data on the awareness and use of KRIs was obtained by adding additional items to the UARM RCQ-2016 and all data were subjected to statistical analyses. The participants’ self-perceived understanding of risk culture maturity were compared with those who were perceived to have a lower level of risk culture maturity. Participants with a higher level of risk understanding (a factor in risk culture) were found to have higher levels of awareness and use of KRIs. The results indicate that KRIs can be used at management level as a tool to improve risk understanding in a South African insurance organisation. This study has established that perceived awareness and use of KRIs can improve risk understanding (part of risk culture).