Digital: Culture & Conduct Deep Dive

Global regulators have made it clear that culture and governance remains a key regulatory priority. In the UK; the FCA has publicly declared its focus to be on four key drivers: purpose; leadership; the firm’s approach to people; and governance; including systems; controls; and oversight for the business. Increased regulatory expectation has placed greater importance on organisations and boards to address behaviours that pose a risk and understand how culture is the root of misconduct. Although the regulators demand financial institutions to foster positive risk culture; there has been a growing consensus that progress has stagnated. Misconduct cases continue to remain a challenge for financial institutions to manage; and there is a greater need for firms to understand the role culture and conduct plays in their organisation and the role it plays in managing non-financial risk.