Tag Archives: corporate governance

Bank Risk Culture: An Alternative View On The Causes Of The Last Financial Crisis

The following is the sixth in a series of articles on bank risk culture. The previous articles can be accessed here or by clicking the HOME tab on the blog.

A total meltdown in any system requires nothing less than a total rethink of the way forward.

Legislators and regulators have blamed the subprime financial crisis on a whole host of issues including derivatives, proprietary trading, deregulation, the collapse of Glass Steagall and the integration of retail and investment banking, as well as the overall failure of risk management and corporate governance. What we have learned so far in this series of articles is that the actual reasons are somewhat different as they relate to the overall culture of banking. Continue reading

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Bank Risk Culture: Why Leadership At The Top Is Single Biggest Source Of Risk

The following is the fifth in a series of articles on bank risk culture. The previous articles can be accessed here or by clicking the HOME tab on the blog.

No discussion of risk and culture is complete without examining the role of leadership in defining both. This week’s article will demonstrate that poor leadership is the single biggest source of risk to an institution. It is also a source of risk which no amount of risk management or focus on risk culture can overcome. Continue reading

Is The Romney Denial On Bain A Case Study In Corporate Governance?

Mitt Romney has stated that he left Bain Capital in 1999 and had nothing to do with the company after that. However, regulatory filings tell a different story. Is there a corporate governance lesson here?

The Presidential election debate in the US between Obama and Romney has for the past several weeks centered on the latter’s involvement in Bain Capital. The questions that have arisen relate to the actual period during which Romney served at Bain including the precise timing of his departure and therefore by definition what actions of that private equity firm could he or should he be made accountable for.

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