Journal Article: Addressing the risk of misconduct in the banking sector: the relationship between culture, governance and remuneration by Dr Shirley Quo

CBFL congratulates former Adjunct Research Fellow, Dr Shirley Quo, on the publication of her journal article, ‘Addressing the risk of misconduct in the banking sector: the relationship between culture, governance and remuneration’ in Company Lawyer (UK).

The article examines the link between culture, governance and executive remuneration practices as the key drivers of misconduct in the banking sector. In particular, the author discusses the contribution of the accountability regimes as encapsulated in the Banking Executive and accountability Regime in Australia and the Senior Manager and Certification Regime in the United Kingdom to incentivise positive behaviour and discourage misconduct. The Australian Prudential Regulatory Authority’s inquiry into the Commonwealth Bank of Australia is used as a case study for the insights it provides and lessons learned in relation to management of its non-financial risks, especially the close link between accountability and governance, risk management and culture. The underlying causes and consequences of misconduct are identified by applying various tools to mitigate misconduct risk through enhanced governance frameworks and mechanisms described in the Financial Stability Board’s toolkit.

Shirley Quo (2022). ‘Addressing the risk of misconduct in the banking sector: the relationship between culture, governance and remuneration’ 43 (11) The Company Lawyer 339-370