Directors hit back at culture report

I’ve not yet read the full report, but I must say this summary of ASIC’s report on the parlous state of governance in ASX companies makes for absorbing reading. These reports keep coming! Keep touching on the same things: inadequate oversight principally regarding consideration of non-financial risks; and deferential boards lacking the essential quality of chronic unease required to properly ask questions and demand more compelling answers from company executives. If you are being snowballed with 300+ pages of board papers, you need to ask some hard questions. What is the executive trying to hide? Respect Bradley’s stature as a commentator but frankly see his responses as very defensive and old school. He is reactive to social purpose in corporations, defensive of the group think problems caused by the clear lack of board diversity in terms of gender, skill, experience and ethnicity in ASX 200 companies and critical of ASIC’s enforcement toughs re Westpac. Reactionary but not right. #governance #directors #boards #risk #executives

#Riskgovernance in major financial institutions seems to be more about form than substance. The avoidance #culture we identified back in 2014-15 shows no signs of abating. How can directors justify that they have tolerated risks outside of appetite for months/years at a time? Risk appetite that they themselves supposedly own. See my comments on the latest ASIC report. ASIC, along with Elizabeth Arzadon have uncovered some concerning issues. https://lnkd.in/fr_jn9P #macquariebusinessschool #banking

“Boards can strengthen their effectiveness by addressing three factors: ? ? Improving ownership of their role in creating the conditions that underpin effective risk oversight ? ? Clarifying and focusing on outcomes rather than on processes associated with the board’s role ? ? Increasing their commitment to collective rather than individual performance” I’m not convinced this is an earth shattering conclusion that merits the emotive headlines. Create the right environment, focus on outcomes and align the team... sounds like leadership to me. #couragenotcomplacency