The COVID pandemic has made business ‘resiliency’ a key priority. To safeguard such, financial institutions, their regulators and auditors, should examine whether their approach to conduct risk governance and supervision is ‘Fit for Purpose.’
As we go to print, Credit Suisse is been embroiled in a series of crises stemming from lapses in its financial risk governance practices.1 In the last year: it was caught up in alleged fraud at Chinese coffee house chain Luckin Coffee;2 exposed to the fraud-driven collapse of German payments company, Wirecard;3 indicted in Switzerland over alleged dealings with a Bulgarian cocaine smuggling operation;4 and it has faced enforcement action from the Swiss Financial Market Supervisory Authority (FINMA) in connection with an expanded spying scandal that involved surveillance of its own employees, ordered by the firm’s COO.5 In March this year, the firm said its clients could lose up to $3 billion from frozen funds linked to collapsed specialist finance firm Greensill Capital.6 In April, it announced that it would suffer a $4.7 billion hit triggered by the meltdown of Archegos Capital Management.7
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