Cultural change prescribed in response to subprime losses
As banks and other market players seek to close risk management loopholes exposed by tottering markets, some post-mortems are homing in on a broader issue: corporate culture.
“Organisational culture and governance was one of the key failings in the subprime crisis,” declared James Lam, Boston-based president of risk consultancy James Lam & Associates.
On May 23, as part of a review following Jérôme Kerviel’s €4.9 billion rogue trade at Société Générale, auditing firm PricewaterhouseCoopers noted: “The general environment did not encourage the development of a strong support function able to assume the full breadth of its responsibilities in terms of transaction
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