The Royal Commission: Corporate culture spotlight: Where is all this heading?

  • The royal commission has exposed that internal controls have, to some extent, broken down within some of Australia’s most venerable companies.
  • People risk arises when an individual has an incentive to act in a certain way with a perceived low level of risk.
  • Boards and regulators need to find proactive ways to measure people risk and manage it accordingly.

Close up of columns on a building

Headed by Commissioner Kenneth Hayne AC QC, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was established in 2017 to inquire into and report on misconduct in the banking, superannuation and financial services industries.

Setting the scene

The commission was given the power to recommend changes to the Australian Government that are necessary to improve:

  • the legislative framework of the banking, superannuation and financial services industries
  • the practices within those industries
  • the powers of the industry regulators, that is, Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC).

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