A sound risk culture has been integral to Macquarie’s risk management framework since inception. Primary responsibility for risk management in Macquarie, including risk culture, is at the business level. The Board, assisted by the Board Risk Committee, is responsible for:
Macquarie’s approach to maintaining an appropriate risk culture is based on the following three components:
Senior Management, with oversight from the Board, set behavioural expectations. The way we fulfil Macquarie’s purpose is defined by our principles of What We Stand For: Opportunity, Accountability and Integrity. Staff are made aware that these principles must form the basis of all behaviours and actions. These behavioural expectations are specified in the Board approved Code of Conduct, which is actively promoted by Management and cascaded through the organisation.
Management implements behavioural expectations through:
Macquarie monitors and measures its risk culture to gauge effectiveness while promoting continuous improvement. Mechanisms include:
These mechanisms facilitate a feedback loop of sharing good practice and lessons learned to enable cultural alignment.
Macquarie’s remuneration framework and consequence management process are designed to promote accountability, encourage innovation, reward appropriate behaviours and discourage inappropriate behaviours. Effective consequence management is a key component of Macquarie’s risk culture. Macquarie aims to apply consequences for non-compliance in a timely manner, and as fairly and consistently as possible.