Follow TopicFollow Contributor Share Feedback
An Interview with Professor Kristen Jaconi

An Interview with Professor Kristen Jaconi

by Kristen Jaconi

Executive Director, Peter Arkley Institute for Risk Management, USC Marshall School of Business.

Jun 07, 2023

Compendium

Q: Regulators have emphasized the importance of organizational culture as both a risk factor in itself and as an instrumental element of any successful risk management program. What are your views?

A: When I joined the University of Southern California Marshall School of Business faculty in 2018 to teach enterprise risk management and to run what is now the Peter Arkley Institute for Risk Management, I did not appreciate the importance of culture to effective risk management.While consulting at Promontory Financial Group, I saw that prudential regulators had started to concentrate on culture. I remember vividly the then-Federal Reserve Bank of New York President and Chief Executive Officer Bill Dudley’s industry-scathing speech on the reference rate submission scandal, delivered in fall 2014, followed by an even more industry-scathing speech on culture a couple weeks later. That latter speech launched the FRBNY’s Workshop on Reforming Culture and Behavior in the Financial Services Industry and a “culture” initiative that continues to this day. [See also The In Focus Article Culture & Governance Reform Initiatives at the NY Fed]

This content is available to paid Members of Starling Insights.

If you are a Member of Starling Insights, you can sign in below to access this item. 

 

If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform.  Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.

Join The Discussion

See something that doesn't look quite right?

We strive to provide high quality and accurate content at all times. With that said, we realize that sometimes links break, new information becomes available, or there is something that you feel we may have missed.

If you see something that you think we should be aware of, we would love to hear from you. Feel free to drop us a note below and leave your name and contact info if you'd like to hear back from us.

Thank you for being a key part of the Starling Insights community!