In Australia, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has exposed remarkable failures in risk management, compliance and culture that have claimed the careers of a number of senior managers and directors and seen the threat of litigation. The underlying issues are not unique to the world of finance.
Management systems, including environmental management systems, are multifaceted systems in which people operate. One weakness may undermine the effectiveness of the whole system. For organisations struggling with repeated incidents and near misses, it is tempting to think that there needs to be a focus on one thing. Often that one thing is the rhetoric of ‘zero tolerance’ compliance. Often it is training. Sometimes it is culture. At the time of writing, the newspapers are carrying headlines such as ‘coaching is the key’ in response to the Banking Royal commission.
|Patrick Ibbotson | Partner
Tel +61 2 9291 6169