How to Measure Risk Culture in Australian Superannuation Funds

13 Pages Posted: 27 Feb 2018 Last revised: 28 Feb 2018

See all articles by Elizabeth A. Sheedy

Elizabeth A. Sheedy

Macquarie University Department of Applied Finance; Financial Research Network (FIRN); Macquarie University, Macquarie Business School

Denise Jepsen

Macquarie University

Date Written: January 1, 2018

Abstract

In financial services these days, there is increasing interest in the concept of ‘risk culture.’ Risk culture has been identified as a dimension of organisational culture which is important for encouraging desirable risk management behaviour in the workplace and ultimately for producing both better organisational and customer/member outcomes in the financial services industry.

Using a valid and reliable scale is very important when conducting surveys; an invalid measure may not measure what it purports to measure and therefore may mislead.

The Macquarie University Risk Culture Scale is a set of 18 survey items initially developed for assessing risk culture in banks. The scale has now been validated for use in superannuation (pension) funds. This paper explains the validation process, giving confidence to those wishing to assess risk culture.

Keywords: Risk, Culture, Finance, Management, Governance

Suggested Citation

Sheedy, Elizabeth A. and Jepsen, Denise, How to Measure Risk Culture in Australian Superannuation Funds (January 1, 2018). Macquarie University Faculty of Business & Economics Research Paper. Available at SSRN: https://ssrn.com/abstract=3128693 or http://dx.doi.org/10.2139/ssrn.3128693

Elizabeth A. Sheedy (Contact Author)

Macquarie University Department of Applied Finance ( email )

Room 739, 4 Eastern Road
Macquarie University
North Ryde, NSW 2109
Australia
61-2-9850 7755 (Phone)
61-2-9850 7281 (Fax)

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Denise Jepsen

Macquarie University ( email )

New South Wales 2109
Australia
419977317 (Phone)

HOME PAGE: http://www.businessandeconomics.mq.edu.au/contact_the_faculty/all_fbe_staff/denise_jepsen

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