Finally, the Central Bank has communicated about how low levels of diversity in key decisionmaking roles in banks and other financial services firms can create an environment of excessive risk taking and inhibit necessary cultural change9. While some firms are making progress, more needs to be done to increase diversity at senior levels.
Such diversity can reduce the likelihood of group-think or overconfidence, increase the level of internal challenge, improve decision-making, enhance risk management practices, and reduce resistance to external challenge. The Central Bank expects boards and senior management to develop ambitious diversity goals, including targets and metrics by which they can measure progress.