In fact, the recent instance where a media outfit has brought out an expose on alleged irregular practices at bank branches is a clear instance of failure on the part of bank managements and Boards to institutionalize an effective risk control framework and compliance culture across the organization, right up to the level of the front office staff.
The management has a critical role to play in getting the right balance between the business units and risk management, both in times of stress and in good times, when there is a tendency for misaligned incentives to emerge.