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How Cultural Factors Can Affect 360° Assessment Results
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Also on home. Culture and the role of Internal Audit Whilst traditional Internal Audit methodologies do not sufficiently assess culture or consider behavioural drivers, leading Internal Audit functions are acting now to evolve their audit programs to include cultural assessments of these soft controls. Assessing these human factors can be incorporated in several ways, most notably: adding cultural considerations to existing internal audits e. Serving as a culture promoter : Starting and supporting dialogue with boards and executive leadership about the critical connection between culture, strategy and risk; helping the board understand their role in culture and to gain buy-in from top management.
Understanding the current state : Considering how cultural expectations have been defined, communicated, understood and embedded. To measure the organisational culture, internal auditors may apply root cause analysis, observe behaviours and consider what data is available in the organisation to gain insight into culture e.
Traditional data inputs can then be complemented by other audit procedures including surveys, facilitated workshops, focus groups and advanced analytical techniques like sentiment analysis. Evaluating culture over time : Understanding perceptions about what is happening within the organisation, what is working well, and what are the barriers to achieving organisational goals, including key red flags that may be present. Providing insights and promoting collaboration : Sharing what other organisations are doing, and collaborating with different lines of defence to evolve the framework.
Cultural red flags Pursuit of short-term financial benefits with little to no consideration of customers. Focus on the letter rather than the spirit of the law and regulations. Regarding risk management and controls as an inconvenience. Lack of prompt, proper management action to address known issues.
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