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Prudential Concerns

The conduct risks that follow from organizational culture are not typically treated as matters of prudential concern, impacting the safety and soundness of the financial system. Yet, as Credit Suisse attests, deposit flight is rapid when customers and investors lose faith in management, and this faith can be lost after persistent misconduct scandals. As such, conduct risk governance is an underappreciated prudential matter.

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Strong and Effective Supervision of Governance and Culture

by Chris Gower

Compendium

Jun 11, 2024

Post-financial crisis, regulators focused on preventing bank failures through enhanced risk management and governance. The Australian Prudential Regulation Authority (APRA) emphasized root cause analysis and integrated transformation plans to address governance and risk culture deficiencies. Effective supervision includes early intervention, independent assurance, and fostering a culture of continuous improvement​​.

The 2024 Compendium is available June 11th!

Now in its 7th year, Starling's Compendium features over 40 contributors from across the industry as well as detailed analysis of the latest trends in culture & conduct risk supervision.

2024 Update | Switzerland

by Starling Insights

Compendium

Jun 11, 2024

In our past writings, we have recounted in extensive detail the long stream of conduct, governance, and risk management failures that plagued Credit Suisse in the years leading up to its near-collapse and emergency rescue by UBS in March 2023. We will not seek to repeat that saga here.