The Changing Culture of Risk Management in Banks (Jean Jacques van Helten) - #FBFpills

In the wake of the Global Financial Crisis, regulators realised that formal governance processes and material improvements in risk management did not ensure appropriate regulatory outcomes. Instead, the novel risks required a change in culture. Culture is a matter of overarching principles, that everybody within an organization can understand, relate to, and turn to when in doubt.

But why is culture so difficult to change? What banks are practically doing about it?

Jean Jacques van Helten, Visiting Fellow at the Florence School of Banking and Finance answers to these questions, giving an overview on this topic.

References quoted in the video:
- Andrew Bailey speech: Culture in financial services – a regulator’s perspective: https://www.bankofengland.co.uk/-/media/boe/files/news/2016/may/culture-in-financial-services-a-regulators-perspective-speech-by-andrew-bailey.pdf
- Speech by Jonathan Davidson, Director of Supervision – retail and authorisations at the FCA, delivered at the 2nd Annual Culture and Conduct Forum for the Financial Services Industry in London - https://www.fca.org.uk/news/speeches/getting-culture-and-conduct-right-role-regulator#:~:text=We%20define%20culture%20as%20the,without%20thinking%20consciously%20about%20it.
- Guidelines on Internal Governance (EBA-GL-2017-11), Title V – Internal control framework and mechanisms,15. Internal control framework, 126.

The Florence School of Banking & Finance is a European platform bringing together practitioners and academics from the Banking and Finance sector to develop a common culture of regulation and supervision in the European Union.

It does so through training and policy debate, in close interaction with its network of leading academic institutions.

https://fbf.eui.eu/

Check out our courses:

https://fbf.eui.eu/training/

Join our newsletter!

https://fbf.eui.eu/contacts/