ASIC recognises that culture is at the heart of how an organisation and its staff think and behave, while APRA directs boards to define the institution’s risk appetite and establish a risk management strategy, and to ensure management takes the necessary steps to monitor and manage material risks.
Whilst regulators don’t dictate the type of culture organisations need to have, culture is nonetheless part of their risk based surveillance and compliance reviews, looking at issues like remuneration structure, whistleblowers and complaints handling, as an indicator of bad culture and thus misconduct risk.
“Managing Culture: A Good Practice Guide” is thus a timely and practical guide newly launched by the Institute of Internal Auditors - Australia, The Ethics Centre, Governance Institute of Australia, and Chartered Accountants Australia and New Zealand.
The launch today at The Ethics Centre in Sydney was accompanied by an insightful panel of expert commentators, ASIC Commissioner John Price, Elizabeth Johnstone, Pauline Vamos and Ethics Centre chief Simon Longstaff.
This guide argues that an ethical framework – which is different from a code of ethics or a code of conduct – should sit at the heart of the governance framework of an organisation. An ethical framework includes a clearly espoused purpose, supported by values and principles.
You can download a copy of the paper here: http://ow.ly/Fpo930ha3Rs