Risk culture
Legal and regulatory framework:
- Banking Law: Article 21
- Relevant thematic NBB circulars:
- International reference documents:
- Guidelines EBA/GL/2021/05 of 2 July 2021 on internal governance => paragraphs 94 to 98
A sound, diligent and consistent risk culture should be a key element of institutions’ effective risk management and should enable them to make sound and informed decisions. A sound risk culture includes, but is not necessarily limited to, “tone at the top”, diversity and inclusion, accountability, effective communication, challenge and absence of risk-taking incentives. The risk management function and compliance function should play an active role in implementing an adequate risk culture. For further information on this subject, please refer to paragraphs 94 to 98 of Guidelines EBA/GL/2021/05.