Culture clash: The reasons behind risk culture failure

The dangers of complacency, excessive risk and management failures

Commedia dell'arte masks

A firm's risk culture can go off the rails at many levels and in many ways. In some cases, it has been because of the strategic decisions taken by senior management and the board. In others, it has been because of actions taken by individuals lower down the organisation without the knowledge of those at the top.

At a strategic level, a risk culture may fail because of overoptimism, or what the economics literature calls "disaster myopia" – a lack of focus on potential extreme events or poor

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Investment banks: the future of risk control

This survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

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