Day 4 of the Risk Culture Week.
Today, we continue our tour on risk culture by making a stop at Singapore.
In September 2020, the Monetary Authority of Singapore (MAS) issued an Information Paper on Culture and Conduct Practices of Financial Practices aiming at providing guidelines to strengthen accountability of senior managers in financial institutions. In this Information Paper, it is acknowledged that culture is a key driver of conduct and that the various elements contributing to the culture and conduct of an entity should not be considered in isolation, but rather as inter-related complementary mechanisms which reinforce each other.
What do we like about this Information Paper?
Quite simply, this Information Paper provides really practical and a visual guide which sets out actual behaviours. Yes, it is primarily intended for financial entities but it also serves as a good template for thinking something specific for any other industry. Good enough! But it is also one of the most recent regulatory efforts to discuss the subject of risk culture and will therefore have absorbed much of what has been said before in other places. It’s a clear indication of where businesses will be travelling (even outside the financial industry) on the topic of risk culture.
Additionally, this Information Paper should be considered as a benchmark of clear information that can be cascaded down to individual line managers and staff members. After all, risk culture is a team effort, isn’t it?
Access the article here for free:
Monetary Authority of Singapore (2020)