Our journey towards sustainability

Our clients
Key drivers: materiality top issues
24
Holistic risk management
As identified in EY’s publication, Rethinking
risk management, nonfinancial risk
is increasingly becoming a companywide issue
as well as an ever more important issue across
the FS industry, particularly in banking, with
89% of banks reporting an increased focus
on non-financial risks. Risk culture as a whole
remains a priority, with 75% of banks making
changes to their culture and 81% saying that
culture change is still in progress. The core
challenge for banks is to achieve a balance
between a sales and targets-driven front
office while being conscious of financial
and nonfinancial risks.
89%
of banks report an
increased focus on
nonfinancial risks
67%
of respondents cite
conduct risk as a major
nonfinancial risk
57%
see compliance risk as a top
area of focus for boards
Anti-bribery and corruption
Anti-bribery and corruption remain top
priority concerns within all levels of
organizations. Senior management is
particularly focused on strengthening
processes that create greater awareness and
prevent issues from arising. Many of our
materiality interviewees agreed with the need
for more training and awareness, with one
stating “This is a must have. We have to have a
constant awareness that translates to
everyone in the company.”
Managing our own
governance and risk
We take our own corporate
governance and risk profile
very seriously. EY’s senior
leaders are responsible for
setting the right “tone at
the top” and
demonstrating their
commitment to building a
better working world
through their actions. We
regularly ensure our
people take mandatory
training on anti-bribery,
anti-corruption, antimoney
laundering and risk
management.
Individual and organizational conduct
According to our Rethinking risk management
survey, mis-selling and money laundering
remain the highest two priorities for conduct
risk within the banks. Sixty-seven percent of
respondents cite conduct risk as a major
nonfinancial risk. Within the FS industry there
are two preferred initiatives to measure and
monitor this risk: new risk-and-control
self-assessments by businesses and improving
the forward risk assessment.
In the UK, the Financial Conduct Authority
(FCA) and Prudential Regulation Authority
(PRA) published statements and policy
in 2015 on the Senior Managers and
Certification regimes. These formal
accountability standards and policies place
oversight burden on banks’ senior staff.
It is a preventative policy, ensuring that
senior managers within the banks are
conscious and aware that their actions
will be inextricably linked to outcomes.
Anti-bribery and corruption
remain top priority concerns
within all levels of
organizations.
Appendices Our communities Our people Our clients Introduction