OR management is most effective where a bank’s culture emphasizes high standards of ethical behavior at all levels of the bank. The internal OR culture is the combined set of individual and corporate values, attitudes, competencies and behavior that determine a firm’s commitment to and style of OR management.
Both the board and senior management are responsible for creating an organizational culture that places high priority on effective OR management and adherence to sound operating controls.
The Basel Committee in its Sound Practices paper establishes in the first three principles the basis for achieving these objectives and these can be summarize in the next three issues: