Risk culture: from reactive to preemptive
(WorldNews France)

The recent evolution of risk culture Most companies have extensive experience with risk management, and financial institutions firmly belong in this group. However, the 2008 financial crisis demonstrated that financial institutions had behavioral shortcomings with respect to how risk and internal controls were measured and applied - often in contrast to formal process protocols. This behavior led to unimaginable consequences and contributed to the deepening of the financial crisis. Regulators devised a number of post-financial crisis measures to close this gap, including a formal guidance on how financial institutions must maintain a risk culture. Many Chief Level Executives regard this...