The Monetary Authority of Singapore has published supervisory observations on four culture capabilities associated with more effective remediation of repeated or serious risk events and a lower likelihood of recurrence. The paper emphasizes that correcting controls alone may not produce lasting change where leadership practices, incentives, psychological safety or other cultural factors continue to drive undesirable behavior. Financial institutions are encouraged to establish effective board and senior management leadership and oversight, conduct evidence-based culture root cause analyses, implement targeted and mutually reinforcing interventions, and monitor progress with independent validation. Assessments should connect behavioral patterns to organizational, leadership and social drivers, while monitoring should measure actual changes in behavior rather than only task completion or indicators such as disciplinary actions. The capabilities can also be applied pre-emptively to identify and mitigate behavior and culture risks before serious events occur.
Monetary Authority of Singapore2026-08-12
Monetary Authority of Singapore outlines four culture capabilities for sustainable remediation of serious risk events
The Monetary Authority of Singapore has outlined four culture capabilities to help financial institutions remediate repeated or serious risk events and reduce recurrence. These cover board and senior management oversight, evidence-based root cause analysis, targeted interventions, and monitoring with independent validation, and may also be used preventively.