If banks are to take their role as a gatekeeper of the financial system seriously, they must manage behavioral risk. Behavioral risk is a complex problem requiring a multidisciplinary approach. Looking through a behavioral risk lens means looking at an organization as a social system, and so the task is to understand the dynamics of that system.
Organizational culture steers employees' behavior toward what is desired and expected among peers, reducing insecurity about acting in ways that those peers may find inappropriate. When the behavioral norms among peers conflict with the espoused norms of an organization, peer pressure typically prevails.
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