The transformation of culture in financial services continues to be an area of increased regulatory focus, with poor culture widely reported as a contributing factor to the significant misconduct issues that led to the financial crises a decade ago. As a result, we have seen a plethora of new regulations come into force since then, with the latest being the Senior Manager & Certification Regime.
In the past firms either allowed or encouraged cultures to develop in which the interest of individuals diverged from the interest of the firm. Aggressive trading strategies with excessive and at times reckless individual risk-taking was supported by remuneration schemes that rewarded short-term revenue generation. Together with a belief that misconduct would go either undetected or unpunished this culture has historically contributed to a process of ethical drift where unethical behaviour went unchecked and became progressively more widespread and accepted as the norm.
KRM22’s Global Risk Platform provides applications to help you address your firm’s regulatory, market, technology and operations risk challenges and to manage your entire enterprise risk profile. KRM22 is a public Group listed on AIM and headquartered in London, with offices in several of the world’s major financial centers.