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Contributions to the Supervisors on Supervision Stocktake
Should culture, and the conduct proclivities it may promote or discourage among employees, factor into supervisory engagements?
1.2.1a Many participants see culture as a precursor to misconduct and consumer harm, making it of key interest to conduct regulators.
“Governance and culture are also crucial in managing operational risks.”
1.2.1c Still others see little distinction between cultural drivers of nonfinancial and financial risk, making it an area of interest to conduct and prudential regulators alike.
In recent years there has been increasing recognition that governance and culture relating to financial risks cannot be separated from governance and culture of firms’ activities considered more broadly.”