Abstract
This chapter aims to give an overview on the evolution of banking culture, from the culture of control, to the culture of compliance, up to the culture of risk. During the financial crisis, the culture of risk becomes very important, this due to the crucial role that the risk has in the banking business. Risk culture and risk management are close related and in particular, risk culture is a key component of the risk management efforts. Finally, the chapter describes the relationships between the three “lines of defence” and the role of the Board of Directors and top management in the spreading of risk culture among all levels of bank’s organization.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Basel Commitee on Banking Supervision. Framework for internal control systems in banking organization, September, 1998.
Basel Committee on Banking Supervision. Guidelines on corporate governance principles for banks. Issued for comments by 9 January, 2015, Consultative document.
Basel Committee on Banking Supervision. Compliance and compliance function in banks, April, 2005.
Carretta, Alessandro, and Schwizer Paola. Risk Culture. Milan, ITA: Associazione Italiana Internal Auditors (2015).
Compliance and Compliance Function in Banks, Basel Committee on Banking Supervision, April, 2005.
Corporate Governance in Financial Institutions: Lessons to be Drawn from the Current Financial Crisis, Best Practices. Accompanying Document to the Green Paper “Corporate Governance in Financial Institutions and Remuneration Policies {COM(2010) 284 Final}”, European Commission, Brussels, June 2, 2010.
Creating a Robust Risk Culture: Evolving Role of the CRO, KPMG, February 17, 2016.
Direttiva 213/36/UE del Parlamento Europeo e del Consiglio (CRD IV), Banca d’Italia, 26 Giugno 2013.
Disposizioni di Vigilanza per le Banche, Regulation 285/2013, Banca d’Italia, 17 Dicembre 2013.
Directive 285, 17 December 2013, Banca d'Italia, 1st amendment of May 2014.
Enterprise Risk Management—Integrated Framework, Executive Summary, Committee of Sponsoring Organizations of the Treadway Commission, September, 2004.
Establishing and Nurturing an Effective Risk Culture. Fourth in a Series, Online http://www.protiviti.com/en-US/Documents/White-Papers/Risk-Solutions/CRO-Series4-Establishing-and-Nurturing-an-Effective-Risk-Culture-Protiviti.pdf, Protiviti, 2013.
European Commission. Corporate Governance in Financial Institutions: Lessons to be drawn from the current financial crisis, best practices. Accompanying document to the Green Paper “Corporate governance in financial institutions and remuneration policies {COM(2010) 284 final}”, SEC(2010) 669, Brussels, 2 June.ù, 2010.
Framework for Internal Control Systems in Banking Organization, Basel Committee on Banking Supervision, September 1998.
Guidance on Supervisory Interaction with Financial Institutions on Risk Culture. A Framework for Assessing Risk Culture, Financial Stability Board, 2014.
Guidelines on Corporate Governance Principles for Banks, Consultative Document, Basel Committee on Banking Supervision, 9 January, 2015.
Guidelines on Internal Governance, GL 44, European Banking Authority, September, 2011.
Internal Control—Integrated Framework, Committee of Sponsoring Organizations of the Treadway Commission, 1992.
Institute of internal auditors. The three lines of defense in effective risk management and control, Position Paper, January 2013, 2013.
Institute of internal auditors. 2015 Financial discussion and analysis, Report 2015, 2015. http://annualreport.theiia.org/reports/2015-financial-discussions-and-analysis.html#navbar.
Risk Culture Under the Microscope. Guidance for Boards, Institute of Risk Management, London, 2012.
Schwizer P. Internal Governance. Nuove regole, esperienze e best practice per l’organizzazione dei controlli interni nelle banche, EGEA, Milan, 2013.
Schwizer. Internal Control: tools and processes. In Doing Banking in Italy: Governance, Risk, Accounting and Auditing issues, Carretta A., Sargiacomo M. (edited by) (2016), McGraw-Hill, London, 2016.
The “Four Lines of Defence Model” for Financial Institutions, Occasional Paper n. 11, Financial Stability Institute, December, 2015.
The Three Lines of Defense in Effective Risk Management and Control. Position Paper, Institute of Internal Auditors, January, 2013.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Cucinelli, D. (2017). Internal Controls and Risk Culture in Banks. In: Risk Culture in Banking. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-57592-6_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-57592-6_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-57591-9
Online ISBN: 978-3-319-57592-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)