Embedding risk culture in a financial institution: an action research perspective

Abstract This paper documents a one-year Action Research project designed to embed risk culture within a financial institution. Through a participatory and iterative process, the study integrates initial survey results, collaboratively develops targeted interventions, and aligns them with organizational strategies. The phased approach included defining risk culture, analyzing survey data, implementing structured interventions, and institutionalizing governance mechanisms to ensure long-term cultural alignment. Key outcomes include the establishment of governance structures such as guiding principles, a formalized review process, and performance-linked indicators (KPIs) to monitor progress. Additionally, tailored actions were designed to drive measurable improvements in employee engagement with risk culture principles. This study contributes to the literature by demonstrating how risk culture can be operationalized through structured yet participatory processes, bridging the gap between compliance expectations and internal cultural transformation. It also highlights the underexplored potential of Action Research as a dynamic methodology for enabling change in regulated environments. By integrating diagnostic insights, governance mechanisms, and cultural adaptation into a coherent transformation process, the study provides a replicable framework for embedding risk culture in financial institutions and contributes to ongoing debates on methodological interdisciplinarity in management research.