imb site visit

by Alisha Musker

The Leadership Illawarra Program cohort recently completed our second site visit on the topic of Governance and Ethics at the IMB.

We had the privilege of listening to Nathan Campbell, Chief Risk Officer and Lauren Wise - General Manager Corporate Services & Company Secretary. The visit was an extremely insightful look into how an organisation in such a heavily regulated environment balances the need for a strong risk culture with staying efficient, productive and competitive.

With an interesting quote that 30% of all failures are as a result of systems and 70% are as a result of people, the risk culture strategy is strong and improves and changes every year.

The IMB systematically employs the three lines of defence approach to risk culture/management.

• Line 1 - Business units including the front line, working within defined limits, are responsible for risk identification, risk management and maintaining effective controls;.
  
  
• Line 2 - Risk function supported by business unit risk areas and the Executive Risk Committee responsible for establishing and maintaining the risk management framework and providing independent risk oversight; and
  
  
• Line 3 - Internal Audit responsible for providing independent assurance on the adequacy of the Group’s risk management processes and controls.
  
  

They have seen ever changing requirements from APRA since the GFC and every year they have had to adapt to changes to their corporate governance requirements, with those requirements becoming more prescriptive over time.

IMB’s risk culture strategy has a strong link back to the Values and Code of Conduct of the organisation which dictates the above and below the line behaviours.

It was great to also hear firsthand the change to IMB Bank and the strategy behind the change as well as the long term plans for this local institution who are a major contributor to our local community with over 7.6 million being donated to over 500 projects since 1999. 

Thanks Nathan and Lauren for a great afternoon, very informative.