An Australian Prudential Regulation Authority report found the CBA guilty of complacency:<\/p>\n
\u201cThe report also found a number of prominent cultural themes such as a widespread sense of complacency, a reactive stance in dealing with risks, being insular and not learning from experiences and mistakes,\u201d the APRA report said.<\/h3>\n<\/blockquote>\n
It also found the bank\u2019s profitability had had a dulling effect on the business.<\/p>\n
\u201cThis dulling was particularly apparent in CBA\u2019s management of non-financial risks,\u201d the report said.<\/h3>\n
\u201cThese risks were neither clearly understood nor owned, the frameworks for managing them were cumbersome and incomplete, and senior leadership was slow to recognise, and address, emerging threats to CBA\u2019s reputation,\u201d the report said.<\/h3>\n
\u201cThe consequences of this slowness were not grasped,\u201d it said.<\/h3>\n<\/blockquote>\n
Among other conclusions the report found:<\/p>\n
* Inadequate oversight and challenge by CBA\u2019s board and its committees of emerging non-financial risks.<\/p>\n
* Unclear accountabilities, starting with a lack of ownership of key risks at the executive committee level.<\/p>\n
* Overly complex and bureaucratic decision-making processes that favoured collaboration over timely and effective outcomes and slowed the detection of risk failings.<\/p>\n
* An operational risk management framework that worked better on paper than in practice, supported by an immature and under-resourced compliance function.<\/p>\n
* A remuneration framework that, at least until the Austrac action, had little sting for senior managers and above when poor risk or customer outcomes materialised.<\/p>\n\n
Scott Morrison says he expects other Commonwealth Bank board members will resign after the APRA investigation report #auspol<\/a><\/p>— Bevan Shields (@BevanShields) April 30, 2018<\/a><\/blockquote> \n