APRA has given its approval for the integrated plan about risk governance. This plan was meant to outline in detail all major remediation activities related to risk governance. The plan was also mean to have clear timelines and specify who is accountable for delivery.
All of Westpac’s risk governance across both financial and non-financial risk will be strengthened and independently assured.
Westpac CEO Peter King said: “Our integrated plan outlines a comprehensive program of work to ensure the bank’s risk culture and risk governance meet the high standards expected of us. We have made progress on improving our management of risk over the past 12 months, however there is much more work to do to ensure sustainable change.
“The implementation of our integrated plan is a critical part of delivering on our Fix, Simplify, Perform strategic priorities and is one of my top focus areas.”
Brief thoughts on Westpac’s plan
It’s important that the major banks like Westpac learn and grow from their mistakes when it comes to risk governance such as what happened in the Royal Commission. If banks don’t improve then the same mistakes could happen again in the future.
Banks are going through a recovery, but long term growth is uncertain. Some ASX dividend shares that have been more consistent with their payouts over the last 12 months.