What and Why, Business and Economics, Macquarie University
Why Culture Matters
Regulators and industry participants alike acknowledge the importance of organisational culture in banks as a crucial factor in preventing scandal, unexpected losses and even insolvency. 'Risk Culture' has been identified as being a key driver of employee behaviour and causal factor related to undesirable outcomes in banks.
What is Risk Culture
We define risk culture as 'the shared perceptions among employees of the relative priority given to risk management, including the practices and behaviours that are expected, valued and supported'.