Westpac culture still 'immature and reactive'

Press/Media: Expert Comment

Description

Westpac Banking Corp has been forced to launch a new program to attempt to fix its broad risk-management failings, after a reassessment of its culture demanded by Australian Prudential Regulation Authority identified ongoing concerns, including that its nonfinancial risk culture is still ‘‘immature and reactive’’. The report identifies a lack of urgency and clarity in Westpac’s response to problems it identified in a 2018 self-assessment of governance, which were exacerbated when AUSTRAC dropped a bombshell case last November that triggered the departures of the bank’s CEO and chairman. APRA insisted on the reassessment over concerns Westpac was not tackling the root causes of its failings when it read AUSTRAC’s statement of claim. The latest investigation found Westpac is still ‘‘overly complex,which results in confusion around accountability and challenges in execution’’.

Subject

Banking

Period18 Jul 2020

Media contributions

1

Media contributions

  • TitleWestpac culture ‘immature, reactive’
    Degree of recognitionNational
    Media name/outletAustralian Financial Review
    Media typePrint
    CountryAustralia
    Date18/07/20
    DescriptionWestpac Banking Corp has been forced to launch a new program to attempt to fix its broad risk-management failings,
    after a reassessment of its culture demanded by Australian Prudential Regulation Authority identified ongoing concerns, including that its nonfinancial risk culture is still ‘‘immature
    and reactive’’. The report identifies a lack of urgency and clarity in Westpac’s response to problems it identified in a
    2018 self-assessment of governance, which were exacerbated when AUSTRAC dropped a bombshell case last November that triggered the departures of the bank’s CEO and chairman.
    APRA insisted on the reassessment over concerns Westpac was not tackling the root causes of its failings when it read AUSTRAC’s statement of claim. The latest investigation found Westpac is still ‘‘overly complex,which results in
    confusion around accountability and challenges in execution
    Producer/AuthorJames Eyers
    URLhttps://www.afr.com/companies/financial-services/westpac-culture-still-immature-and-reactive-20200717-p55cxa
    PersonsElizabeth Sheedy