Accountability for bankers: still in question?
Posted: 5 November 2012 | Author: David Rogers | Source: SAS
The 2012 EIU report on accountability in financial services checks in with industry leaders
In the 21st century, banking is a complex, fast-moving global industry with many moving parts, each working to meet a vast array of customer, public and corporate needs. Many who view the industry from the outside do not fully appreciate or understand the complexities.
Obviously, complexity is not a defense against unwillingness to change, but it does explain the slow progress. It’s little wonder that customers and the public at large continue to question why bankers appear to see themselves as a special case, appear to lack any humility, and appear to not recognise that they are part of a service industry - one charged with providing finance rather than behaving like a Vegas casino. Is this opinion fair?
The flip side
Global and country regulators are placing a great deal of pressure on the industry to create, improve and maintain good risk management practices. These practices are an important ingredient in re-establishing trust with the public. However, the way that the people at the top of financial organizations - from the smallest credit union to the largest Tier 1 bank - see their business’ accountability to society will dictate the success or failure of these governance, risk and compliance developments: How do you manage all of those ‘characters’ and keep a handle on the risks while still regaining public trust and being accountable on the ‘right’ levels?
The 2012 Economist Intelligence Unit (EIU) report on accountability in financial services has uncovered how C-level executives view their responsibilities - beyond maximising profits.
What do you think the bankers think? Take a look at the YouTube video from SAS that highlights the key findings from the report on accountability and how risk management is an important part of getting the balance between ‘gut feel’ and ‘analytical data points.’