With FinTech and InsurTech shaking up traditional ways of doing business, there has been a fundamental shift in the way financial institutions manage compliance and risk. ‘Risk awareness’ has become a hot topic across the industry, with leaders looking at how to embed a strong culture.
So how can a risk awareness culture be defined? According to research paper by EY, a risk awareness culture refers to behaviours and business practices that are conducted in an “ethical and legal manner”1. The paper suggests that recent allegations of non-compliance among banks has placed onus on the industry to implement more effective risk management practices.