The newsLINK Group - Cure for the Common Culture

Editorial Library Category: Banking & Finance Topics: Branch Banking Title: Cure for the Common Culture: How to Build a Healthy Risk Culture Author: Ryan J. Dent, PwC, Banking & Capital Markets Partner Synopsis: The rise of the digital consumer and the high cost infrastructure of physical banking locations are leading to a declining ROI for many branches. If the branch model stays on its current course, it could become a financial burden to banks, cutting into cross- channel profitability. Editorial: Cure for the Common Culture: How to Build a Healthy Risk Culture 4064 South Highland Drive, Millcreek, Utah 84124 │ │ (v) 801.676.9722 │ (tf) 855.747.4003 │ (f) 801.742.5803 Editorial Library | © The newsLINK Group LLC 3 Developing an enterprise-wide view of data—to overcome fragmented technology, inadequate risk reporting, and long-standing silos. Building greater access to information—to improve management’s ability to proactively identify, escalate, and track potential risks. For example, instant queries and customizable reports have helped management keep pace with business changes. Improving communication channels—to help risk information get to the right people, when and where it’s needed. Develop a consistent global approach to risk management across regions. Just over one-fifth of survey respondents said that risk triggered in one location is analyzed consistently for global implications. The potential impact is disturbing, since it only takes one rogue trader in a distant region to wreak havoc across an established global bank. Global banks need to remember that it’s not enough to create a global policy and mandate its adoption. Banks also need to gain perspective about the local markets they do business in, and adapt their risk initiatives to those markets. Leading banks know that risk culture is a complicated thing that needs to be supported by a combination of people skills, policies, protocols, and tools. It’s hard to rally an organization to think about changing the risk culture—after all, the mark of a strong risk culture is a company that doesn’t make headlines. Sources: None provided. Word Count: 1,116 Copyscape Clear Date: Original editorial provided by outside source. Author Bio: Ryan Dent is a Banking and Capital Markets Partner in PwC’s Assurance practice, based in Salt Lake City. © 2014 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see f or further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. Author Photo: None provided. Permission to use: Permission to use article provided on 12.11.2014 by Leila Shamas, Marketing Director, PWC in a meeting at the SLC office.