In which circumstance would a board likely become concerned about risk culture?

A board is likely to become concerned about risk culture when there is a lack of feedback mechanisms for reporting risk issues. This situation suggests a breakdown in communication channels that are essential for identifying, assessing, and managing risks effectively. A robust risk culture relies on open lines of communication where employees feel empowered to report concerns or challenges related to risks. If feedback mechanisms are insufficient or absent, it can lead to unaddressed issues, increased exposure to potential risks, and ultimately, a failure to take necessary actions to mitigate those risks. This concern is foundational to ensuring that the organization can proactively manage risks, support decision-making, and protect the interests of stakeholders.