In 2014, the NY Fed established the Governance and Culture Reform Initiative to address and help mitigate risks from misconduct and organizational culture. The Initiative examines how formal organizational structures and underlying drivers of individual and group behaviors impact outcomes at financial firms.
In the financial industry, the material consequences of misconduct can threaten firms in various ways, including depleting capital through hefty fines and diverting management attention and resources, both of which invariably affect consumers' trust. And, if consumers lose faith in the banking sector, it may undermine the resilience and stability of the financial system, especially in times of crisis.
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