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Observations

Firms and regulators in every major market are asking how their culture can work to optimize performance outcomes and mitigate risks — or the reverse. The stories we observe here highlight global trends among those who are succeeding and those who are struggling, with attention to lessons being learned along the way.

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A Look at Credit Suisse’s $5.5 Billion Loss

18th Jun, 2021

After Credit Suisse lost $5.5 billion due to the collapse of Archegos Capital Management, many questioned the bank's risk management processes. While Credit Suisse allowed…

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BIS and Bank of England to promote Tech Innovation

17th Jun, 2021

The Bank of International Settlements (BIS) recently opened a London innovation hub in collaboration with the Bank of England. This is the fourth innovation centre…

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The Brutal Reality for NAB

16th Jun, 2021

In the wake of the Australian Transaction Reports and Analysis Centre's (AUSTRAC) announcement that it was ramping up its investigation into the anti-money laundering compliance…

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The Era of Outcomes-Based Governance is Here

15th Jun, 2021

Mervyn King, chair emeritus of the International Integrated Reporting Council, argues in a recent Financial Times piece that companies will have to transform their corporate…

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AML: Not a Concern for Banks Only

14th Jun, 2021

Australian regulator, AUSTRAC — a money-laundering watchdog — has acted in recent weeks to challenge related risk management failures at a number of firms. Notably…

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Australian regulators combat misconduct risk in pensions industry

11th Jun, 2021

The Australian Prudential Regulation Authority (APRA) has warned superannuation funds that a single serious accusation of misconduct can be a prudential risk and cause reputational…

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'Culture of Fear' Prevents Junior Auditors From Speaking Up

8th Jun, 2021

A recent report by the Institute for Public Policy Research (IPPR) concluded that a "culture of fear" dominates at accounting firms, preventing junior auditors from…

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Kathy Matsui Starts ESG Venture Capital Fund

7th Jun, 2021

Kathy Matsui, the former vice-chair of Goldman Sachs Japan, launched a venture capital fund to help startups enhance ESG values in early June. The fund…

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Culture & Conduct Risk Management: what does good look like?

4th Jun, 2021

In a recent speech, Suzanne Smith, Executive Director Superannuation Division Australian Prudential Regulation Authority (APRA), offered a perspective on culture and conduct risk governance, to…

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The State of Diversity and Inclusion

28th May, 2021

Recently, Germany’s largest lender promised to raise the share of women among its roughly 600 most senior executives to at least 30% by 2025, up…

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Regulatory Review and Reform in Australia

25th May, 2021

Australian financial regulators ASIC and APRA will now be subject to oversight from an independent authority after it was determined that the relevant parliamentary committees…

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Wells Fargo: U.S. regulators insist on individual executive accountability

12th May, 2021

U.S. federal regulators are seeking millions of additional dollars in penalties from former Wells Fargo executives, escalating the legal fight over responsibility for the organization’s…

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MAS commits S$42m to tech grants in the financial sector

7th May, 2021

The Monetary Authority of Singapore (MAS) will commit S$42 million for the new regulatory technology (RegTech) grant scheme while enhancing the Digital Acceleration Grant (DAG)…

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Compliance, Culture and Evolving Regulatory Expectations

5th May, 2021

In a recent speech, UK Financial Conduct Authority (FCA) Executive Director of Enforcement and Market Oversight,Mark Steward, outlined the key aims of the UK’s Senior…

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APRA to resume focus on culture and conduct risk

3rd May, 2021

Australia Prudential Regulation Authority (APRA) Chair, Wayne Byres, recently delivered a speech to the Committee for the Economic Development of Australia on relevant issues in…

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Beleaguered Credit Suisse must overhaul risk management culture

30th Apr, 2021

Image credit As he takes up chairmanship of Credit Suisse, António Horta-Osório will be expected to focus on an overhaul of the beleaguered firm's risk…

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Bafin Faces Criminal Probe Over Wirecard Supervision

21st Apr, 2021

Bafin, the German financial regulator, is facing a criminal probe into its oversight of Wirecard AG. Investigators will explore allegations that some of the agency’s…

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New Zealand to Focus on Enforcing Conduct Standards

19th Apr, 2021

The Royal Bank of New Zealand (RBNZ) — the country’s central bank — has established a new enforcement department that will work to incentivize and…

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FATF Calls for End to ’Tick-Box’ Risk Management

16th Apr, 2021

Dr. Marcus Pleyer, President of the Financial Action Task Force (FATF), has called upon the G20 to lead a change in regulatory culture in the…

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Credit Suisse Lurches from Crisis to Crisis

7th Apr, 2021

Credit Suisse’s chief executive had a blunt message for his bank: it has an attitude to risk that needs to change. However, since Thomas Gottstein…

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Germany’s BaFin after Wirecard: Reforming the Regulator

5th Apr, 2021

Image Credit German Finance Minister Olaf Scholz wants to reform the Federal Financial Supervisory Authority (BaFin) at a fundamental level, to make the regulator more…

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Behavioral Science & Risk Management at ING

31st Mar, 2021

It is increasingly acknowledged that employee behavior is often a root cause of operational risk in the financial industry. But such behavioral risk is less…

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UK FCA Calls on Whistleblowers

29th Mar, 2021

In an effort to address criticism about the speed of its response to past reports of misconduct, and a failure to shield whistleblowers adequately, the…