Risk, Culture, and Talent in Global Financial Services

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Risk, Culture, and Talent in Global Financial Services

Review. Reinforce. Reframe. Refine.

By Juliet Bourke - Consulting, Partner.

Risk, Culture, and Talent in Global Financial Services is the outcome of a 2014 survey targeted at global senior leaders of financial services firms including Chief Executive Offices (CEOs), Chief Financial Officers (CFOs), Chief Human Resources Officers (CHROs) and Chief Risk Officers (CROs) to assess the extent of people impacts stemming from ever-changing regulatory implications. The report also aims to identify the organisation, culture and talent issues business leaders are grappling with in response to their risk and regulatory environment, and to learn what organisations are doing to address these issues.

Review. Reinforce. Reframe. Refine.
The top four areas of opportunity identified as being important to navigating the current and future regulatory environment are:
 1. Reviewing risk management programs by expanding their scope to focus on people in addition to rules and controls
 2. Reinforcing the need for changing CXO accountabilities and in particular the board’s role in increased stewardship, governance and management of talent-related risk
 3. Reframing talent, compensation and performance management programs to reflect risk management tenets
 4. Refining the culture to move toward one of trust and ‘risk intelligence’ where everyone understands the organisation's approach to risk, takes personal responsibility to manage risk, and encourages others to follow their example.

In the Australian context these four areas of opportunity take on a unique importance compared to other countries, with new risk culture prudential standards coming into effect and the Financial System Inquiry calling for stronger conduct principles for consumers and markets.

Risk, Culture, and Talent in Global Financial Services
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