Is your risk culture where it should be? To stay out of the headlines, financial services firms should identify, monitor, and manage their risk culture.
Our survey shows an increase in how banking professionals feel management’s actions have aligned with their risk related communications—across job levels and across time.
The vast majority of managers say they’re fully aware of the personal consequences of bad behavior. But VPs, directors and the C-suite are a bit less sure.
Are products and services sufficiently analyzed for risks? Far more banking professionals said so in every country we surveyed. Australia reported the greatest jump (+35%).
The vast majority of Australian and US respondents feel encouraged to escalate business risks to management. Other regions were less upbeat, so there’s room to improve.
Sixty percent of our respondents say they’re driven by tangible financial rewards (e.g. bonus and stock options) over intangible rewards (e.g. recognition, career growth, job variety)—a sharp drop from 2014’s 78%. Money still matters most to C-suite executives.
The good news: Most survey respondents indicate that their firms embed compliance with risk procedures in the annual goal setting process. From 2014 to 2018, the percentages around performance reviews and annual goal setting nudged up from 73% to 77% and 64% to 73%, respectively. The bad news: It should be 100%. A sizable number of firms still miss this key opportunity to tie risk management procedures to performance and how that performance is then achieved, which reinforces the individual responsibility and likelihood of compliance.
Our respondents feel that most institutions around the world encourage actions that are consistent with firms’ core values. In the UK, though, we saw a significant drop on this measure, from 88% to 76%, and in Hong Kong and Singapore, little progress from 72% to 75%. There are still opportunities to improve end-to-end compliance processes, and ways to add transparency around how violations are addressed.
More respondents now feel there aren’t enough career development opportunities for risk personnel. In Hong Kong and Singapore, only 64% of respondents now feel they can find internal opportunities, down 19% from 2014. The UK also reported a large dip.