EMBEDDING AND SUSTAINING RISK MANAGEMENT CULTURE
Unless culture is embedded through the firm, it won’t be sustainable. If it’s not sustainable, actions and decisions, whether risk or other, will be at odds with the espoused values. In other words, ‘What do we do when management is out of the room?’ Do you remember those values, or if we are managers, do we ignore or condone unacceptable behaviour? Or those leaders who followed the herd, whether it was subprime mortgages in the US, Personal Protection Insurance in the UK, or ‘rogue’ traders who manipulated LIBOR?
Committed leadership
When it comes to culture, it is not just ‘tone from the top’, but ‘done from the top’.18 That means committed leadership to the firm’s culture, its values and behaviours. ...
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