The interim report was published on 8 November 2012. To read the full report, please click here.
Please click here to read the ESRC article titled "Researching risk in financial organisations" from 5 December 2012.
Risk Culture in Financial Organisations Project have published a Thinkpiece for CII on 20 May 2013. To read the Thinkpiece, please click here.
Press release - Risk Culture in Financial Organisations publish final report: 30 September 2013
Joint research from LSE (Professor Mike Power and Dr Tommaso Palermo) and Plymouth University (Dr Simon Ashby) published today dispels ‘myths’ that poor or deviant risk culture in financial institutions is mainly responsible for recent scandals. The report, Risk Culture in Financial Organisations, says that current debates misleadingly equate risk culture with greater precaution and risk aversion. It challenges the notion that there is a clear distinction between ‘strong’ and ‘weak’ risk cultures. Professor Mike Power comments, “The risk cultures of financial organisations are full of trade-offs, and how they manage those trade-offs is fundamental. This clearly includes, but is not restricted to, the need to balance risk and return. In addition, we find that ‘good’ risk culture is as much about organisational clarity and confidence in making these trade-offs, as it is about the level of risk taken as such, or indeed about ethics.”The report also questions the direction of certain financial sector reforms, including the significant focus on issues such as governance, ethics and incentives.
To read the full press release, please click here.
The final report is available here and the Executive Summary is available here.