Why culture is an investment risk you can't ignore

Written By Bev Shah

Poor culture can lead to poor decisions, weaker performance and worse client outcomes. So why isn't it always treated as a material investment risk?

Poor culture is more than an internal people issue. It can influence investment decisions, risk management, staff retention and ultimately client outcomes and performance.

For asset owners, understanding an asset manager's culture is an important part of assessing investment risk. Culture can also act as an early warning system, highlighting weaknesses in conduct, accountability and decision-making before they become financial or reputational problems.

In this video, four industry experts explain why culture should be treated as a material investment risk and why it deserves greater scrutiny.

Featuring:

  • Debbie Clark - non-executive director

  • Paul Carne - EMEA delegated chief investment officer, Aon Investments

  • Jo Holden - head of manager research, Mercer Global

  • Fraser Lundie - global head of fixed income at Aviva Investors

Bev Shah https://www.cityhivementoring.com
Next

Can wealth managers spot a bad culture before it hits performance?