Protected: Responsibility instead of regulation – risk culture lays the foundation for effective governance in the lending business

Institutions are increasingly confronted with rising risks and growing uncertainty in an ever more dynamic environment. In this context, it is not enough to record and document risks. Instead, banks must understand, openly discuss and consciously manage them.

The risk culture they adopt becomes a decisive factor: it influences the way uncertainty is dealt with, whether risks are addressed transparently, and whether governance is actually effective in everyday life. The quality of the risk culture is particularly evident in the lending business, where conflicts of objectives between risk and return occur daily.

The supervisory authorities have already recognized this: risk culture is no longer a soft topic, but an audit-relevant factor that allows conclusions to be drawn about an institution’s manageability and stability.