Governance Unplugged – Episode 8

“Culture in the Spotlight: Where Tone, Behaviours and Risk Intersect”

Culture isn’t just a “soft” topic—it’s a core driver of behaviour, and behaviour drives risk. In this episode, Thomas Michel is joined once again by Kevin Martin to explore one of the most elusive yet impactful areas of internal audit: auditing culture.

Together, they unpack why culture matters, the risks of ignoring it, and how auditors can approach this sensitive area with credibility and value. Auditing culture is not about passing judgment, but about understanding behaviours, assessing tone, and connecting the dots between risks, incentives, and the control environment.

Key Topics Discussed
• Why culture is a critical risk factor—and what’s at stake if we ignore it
• The link between tone at the top, individual behaviours, and organizational outcomes
• How to approach auditing culture without making it personal or confrontational
• Warning signs of cultural weakness: from mandatory training to incentive schemes
• Embedding culture assessment into every audit instead of treating it as a standalone exercise
• The role of auditors as both analysts and “organizational anthropologists”
• Why whistleblowing, psychological safety, and trust are central to healthy culture
• Practical ways to spot “cliff edge” risks and unintended consequences of incentive programs

Takeaway
Auditing culture requires courage, curiosity, and sensitivity. By focusing on behaviours, incentives, and tone, internal auditors can shine a light on cultural dynamics that either strengthen or undermine resilience. Culture, when understood well, becomes not a minefield—but a source of meaningful insight and lasting organisational strength.

Listen now on Apple Podcasts, Spotify, or your favourite platform—and join the conversation on LinkedIn at KeyStone Governance.