The LILAC model, developed by the Institute of Risk Management (IRM), outlines five essential components for embedding a positive risk-aware culture within an organisation. The acronym stands for Leadership, Involvement, Learning, Accountability, and Communication. The model posits that strong leadership commitment and a culture of continuous learning are foundational. Leadership must visibly champion risk management, while the organisation must learn from experiences to improve its risk processes. Option A correctly identifies two of these five core pillars of the model.

B: 'Investment' is not a formal component of the LILAC acronym, although it is necessary to support the framework's elements.

C: 'Appraisal' is not a specific component of the LILAC model, though it is a mechanism for enforcing accountability.

D: 'Information' is not a component of the LILAC model; the correct corresponding element in the acronym is 'Communication'.

1. CIPS. (2019). Managing Supply Chain Risk (L5M2). CIPS Official Course Book. Profex Publishing. Chapter 3: The Need for a Risk Management Culture

Section on 'Models for developing a risk culture'.

2. The Institute of Risk Management (IRM). (2012). Risk Culture: Resources for Practitioners. Page 7

Section: 'The LILAC approach'. Available from IRM publications.

3. Hopkin

P. (2018). Fundamentals of Risk Management: Understanding

Evaluating and Implementing Effective Risk Management. 5th Edition. Kogan Page. Chapter 15: Risk Culture

pp. 229-231. (This text details the IRM's LILAC framework as a key model for developing risk culture).