Management information on culture
How can Boards and senior management meaningfully assess the culture of their financial institution?
This paper, launched in partnership between Deloitte’s three regulatory strategy centres, sets out eight principles for collecting meaningful management information on culture that will allow Boards and senior management to understand if their “tone from the top” is reflected in a strong and consistent “echo from the bottom”.
In recent years, culture of a financial institution has steadily become a top priority for the financial services industry. Just how regulators supervise culture remains the basis of much debate, as does how a firm can effectively assess their own culture.
Despite the growing focus on culture across the globe, national regulatory expectations and industry responses remain varied, especially within the Asia Pacific region. Australia’s regulators have taken a progressive stance on assessing firms’ risk culture – Boards and Executive teams of Australian financial institutions are already required to demonstrate they understand their firm’s risk culture. While other national regulators in Asia Pacific have not yet adopted such forward looking risk culture assessments, we don’t expect them to be far behind.
This paper seeks to answer the following questions, drawing on Deloitte member firm culture experts in EMEA, the US and the Asia-Pacific region, as well as discussions with clients:
- How can firms articulate their target culture?
- What are the principles for collecting meaningful culture management information?
- How can firms put the principles into practice?
- How do regulatory approaches to culture differ across jurisdictions?
Principles for culture MI
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The Deloitte Asia Pacific Centre for Regulatory Strategy
Through regular dialogue with regulators and financial institutions across the region, and in collaboration with Deloitte’s global network, including its existing centres in EMEA and the U.S., the Deloitte Asia Pacific Centre for Regulatory Strategy provides clients with critical insights and advice on managing the aggregate impact of regional and international regulatory policy. Click here for more information on the Centre.