The escalating fines and reputational damage from conduct breaches across many major banks globally, following on from the major losses in the global financial crisis, are driving regulators and bank boards to focus on how to change banking culture. An EY/Institute of International Finance survey on risk governance -Shifting focus: risk culture at the forefront of banking - shows that 50% of the global systemically important banks sampled have had operational events costing more than $500m in the past five years, driven significantly by weaknesses in controls. Many banks are embarking on programmes to change their culture, but it is important that these programmes are well focused. The theme of my recently published book Risk Culture and Effective Risk Governance~* is that many different strands must come together across 'hard' risk management capabilities to 'softer' people frameworks to change culture effectively, and that any approaches that are too narrowly focused are likely to fail.
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