Having a strong Risk Culture does not mean taking less risks
Risk Culture is a buzzword since a couple of years, especially since the regulators have put it on the agenda. Libor scandal, Rogue Trading, Miss-selling: The scandals – especially in the financial services industry – have continued and consumers, regulators and even the employees in these companies, who were often unfairly painted with the same brush, have become frustrated with the leadership and the company cultures. With a big enough scandal this often resulted in a change of leadership, but even those drastic measures have not always significantly changed things.
The result: the regulators ask for a strong risk culture and evidence thereof. And they did it because they realized, that imposing more rules and installing more controlshas not and will not make as much of a difference as a change in culture will.