Video | Culture & Conduct Risk Governance

The session titled "Culture & Conduct Risk Governance: Lessons from the 2023 Banking Turmoil" focused on critical aspects of risk governance and management in the wake of the 2023 banking turmoil. The conversation emphasized the importance of effective risk governance, highlighting the natural tensions within firms and between firms and regulators. The discussants highlighted the necessity of partnerships between management, boards, and regulators to maintain a sound risk management system, noting the difficulties in aligning these various elements.

The discussion also touched on the challenges of public-private engagement and the roles of different entities in risk management. Mark Watson pointed out the unrealistic expectations placed on boards and the need for better management structures and communication within firms. He emphasized the importance of management accountability and the potential for culture to impact organizational behavior. Both speakers agreed on the necessity for boards to focus on strategy, business models, and operating models, and to hold management accountable for ensuring risk culture is embedded throughout the organization.