Research paper of the year

The Role of Risk Climate and Ethical Self-interest Climate in Predicting Unethical Pro-Organisational Behaviour By Elizabeth Sheedy, Patrick Garcia and Denise Jepsen at Macquarie Business School

This paper found that risk culture is necessary but not sufficient for tackling misconduct. Risk culture can, however, complement an ethical, low self-interest culture and together they reduce misconduct. These findings suggest that leaders need to rethink their approach to organisational culture, adopting a multi-pronged approach.

Revisiting risk culture in financial institutions

Since the global financial crisis,
financial institutions have worked to implement a strong ‘risk culture’.
But despite poor risk outcomes,
including legal costs, fines, and
customer remediation, misconduct
toward customers continues to occur. Does this mean that risk culture is the wrong way to approach misconduct?
Or is it that attempts to create a risk culture have just not worked?