Sep14
Risk strategies often fail because cultures are fragile. Too often, silence delays escalation, hesitation hides signals, and decisions are made on incomplete information.
In my work with boards, executives, and risk leaders, I see the same pattern: organisations build detailed frameworks but neglect the foundation that makes them work — trust. Without psychological safety, those frameworks remain theoretical.
High-performing organisations treat trust as a strategic capability. It becomes the invisible infrastructure that ensures risks are surfaced, escalated, and acted upon when it matters most.
This article is based on insights from my recent webinar, “Why Your Risk Strategy Starts with Trust”, where over 100 professionals explored the link between psychological safety and risk visibility. You can watch the full recording here - The Risk Within Ask the Author Q&A.
Psychological safety is often misunderstood as “being nice” or avoiding conflict. In reality, it is about creating the conditions where people feel safe to challenge assumptions, raise concerns, and share weak signals without fear of repercussion.
In The Risk Within, I define psychological safety as a shared belief that it is safe to speak up, ask for help, or admit mistakes. This belief shapes what people say under pressure and how quickly issues come to light.
When psychological safety is strong:
Risks are escalated earlier.
Decisions reflect reality, not silence.
Leadership alignment strengthens governance outcomes.
When it is absent, risks are buried, signals are ignored, and frameworks fail to deliver.
In recent polls with risk professionals, several themes emerged:
45% of middle managers said lack of leadership backing prevents escalation.
57% identified resistance to change as the biggest cultural barrier.
66% pointed to silence and conformity as the most dangerous cultural signals of risk blindness.
These figures highlight a core truth: culture, not process, defines whether risk frameworks succeed.
Leaders can strengthen trust and risk visibility by making three practical shifts:
Make leadership support observable
People watch what leaders do more than what they say. Model inquiry, thank candour, and close the loop when issues are raised.
Remove ambiguity from escalation
Clarity matters. Define thresholds, channels, and expectations so people know what good escalation looks like.
Treat silence as data
Periods of “no escalation” in dynamic environments are not reassuring. They are a signal to ask: What are we not hearing, and why?
For risk functions, this is not about becoming softer. It is about becoming more strategic. Functions framed only as compliance cost centres will always be first in line when budgets are cut. Functions positioned as enablers of trust and decision-making resilience are seen as essential to growth and stability.
This requires a shift in mindset: from enforcing policy to enabling transparency, challenge, and foresight.
Risk strategy starts with trust because trust determines whether frameworks are lived or ignored. The most resilient organisations do not just build processes. They build cultures where candour is rewarded, escalation is safe, and silence is treated as a risk signal.
By Julien Haye
Keywords: Culture, Leadership, Risk Management
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