ANZ hires McKinsey for culture and risk review
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The news: ANZ has hired McKinsey to undertake a review of its culture and risk management after a series of failures led to a crackdown from the Australian Prudential Regulation Authority (APRA).
The context: A spokesperson for the consulting firm said it was appointed to complete an independent examination of ANZ’s non-financial risk management practices and culture, according to Bloomberg.
In April, APRA raised ANZ’s capital add-on from $750 million to $1 billion amid ongoing risk management practices and culture concerns, including weaknesses in the bank’s operational risk and compliance management and a reactive risk culture.
ANZ also accepted a court enforceable undertaking to address its non-financial risk management practices and accepted all recommendations from an independent review undertaken by consultancy firm Oliver Wyman.
The review had found leadership shortcomings and broader poor behaviour including alcohol abuse. However, the impact on the bank's franchise value has remained relatively muted.
When ANZ chief executive Nuno Matos began in the role in May he said improving how the bank manages both non-financial and financial risks is a “very strong priority”.
The Australian Securities and Investment Commission is due to complete its investigation into suspected market manipulation with regard to an issuance of Australian government bonds in 2023.
The sources: Bloomberg, ANZ transcript
