Staff must act with integrity doing the right thing and promptly escalate

Staff must act with integrity doing the right thing

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Staff must act with integrity (doing the right thing) and promptly escalate observed non-compliance within or outside the organisation (no surprises approach). The leadership of the institution promotes, monitors, and assesses the risk culture of the financial institution; considers the impact of culture on safety and soundness; and makes changes where necessary. Accountabilit y Relevant employees at all levels understand the core values of the institution and its approach to risk, are capable of performing their prescribed roles, and are aware that they are held accountable for their actions in relation to the institution’s 47
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FSB’s indicators of a sound bank risk culture (continued) Effective communication and challenge A sound risk culture promotes an environment of open communication and effective challenge in which decision-making processes encourage a range of views; allow for testing of current practices; stimulate a positive, critical attitude among employees; and promote an environment of open and constructive engagement. Incentives Performance and talent management encourage and reinforce maintenance of the financial institution’s desired risk management behaviour. Financial and nonfinancial incentives support the core values and risk culture at all levels of the institution. 48 Source: Guidance on Supervisory Interaction with Financial Institutions on Risk Culture, Financial Stability Board (2014)
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NOT FOR RESALE. All materials produced for this course of study are reproduced under Part VB of the Copyright Act 1968, or with permission of the copyright owner or under terms of database agreements. These materials are protected by copyright. Monash students are permitted to use these materials for personal study and research only. Use of these materials for any other purposes, including copying or resale, without express permission of the copyright owner, may infringe copyright. The copyright owner may take action against you for infringement. MONASH BUSINESS SCHOOL Copyright @ 2019 49
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