Startups & VC

The yellow flag problem: Most risk functions fail at culture before they fail at technique

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Risk functions in financial institutions often fail due to cultural issues rather than technical shortcomings, as highlighted by a case where a product's approval ignored initial risk warnings. This cultural failure occurs when risk officers are marginalized or when committees rubber-stamp decisions without proper scrutiny. Developers and tech professionals should focus on fostering a culture that values open disagreement and thorough post-mortem analysis to prevent future failures.

Read the full article at e27


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