ECIIA Paper: Auditing Risk Culture
30 August 2024
ECIIA’s new paper explores the evolution of risk culture since the 2008 financial crisis, examining the key initiatives and reforms implemented by regulators globally.
In today’s rapidly changing banking landscape, maintaining a strong risk culture is essential for safeguarding against potential threats and ensuring the stability and success of financial institutions.
Key highlights include:
- The role of regulators: How organisations like the European Central Bank (ECB) and international think tanks such as the Group of Thirty (G30) have influenced risk culture.
- Supervisory expectations: The importance of board dynamics, “tone from the top,” and embedding cultural values throughout the organisation.
- Challenges in auditing risk culture: Insights into the complex task of auditing risk culture, considering both quantitative and qualitative factors.
A strong risk culture is not just a regulatory expectation but a necessity for financial stability, impacting everything from responsible decision-making to the timely escalation of risks. This paper provides a comprehensive look at how banks can foster a robust risk culture.
Download the full paper here.
ECIIA
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