Last year’s bank failures left many asking, "Where were the supervisors?" Warning signs may be obvious in hindsight, but only serve to demonstrate that current oversight is overly reliant on supervisory judgement. So long as culture and risk governance remain a matter of subjective judgement, regulators and firms will remain challenged in deciding when intervention is necessary.
Observations
Jan 23, 2025In recent comments, leaders of the UK Financial Conduct Authority (FCA) have emphasized that, in order to promote growth, regulators must be allowed to take more risks.
Compendium
Jun 11, 2024Compendium
Jun 11, 2024Often management is downgraded to “poor” by bank examiners only after the symptoms of bad management have manifested in weak financial results. Management teams are often rated as perfectly adequate when financial results are good. Effective risk governance requires a proactive and comprehensive approach to managing these emerging challenges while maintaining a focus on organizational culture and psychological safety.
by Stuart Mackintosh, Peter Routledge, Sharon Donnery, Bryan Stirewalt
Compendium
Jun 11, 2024