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It seems like everything is not well in Westpac Banking Corporation (ASX:WBC), if recent issues are to be believed. A risk manager working at Westpac Banking, one of the four big banks in Australia, stated that he has been completed ignored on the issues which he has raised in regard to the technology project at Westpac. He has brought this to the notice of Australian Prudential Regulation Authority or APRA as well as SafeWork NSW. He believes that such unprofessional behavior of the bank clearly articulates the poor risk culture which has been followed in the bank. He also stated that the bank covers up bad news as well as completely ignores the employee who raises such kind of issues.
The risk manager who has raised the issues stated negative comments for the company. According to him, he wonât be getting the HR managers, still, he would not give up his roles and responsibilities and continue to work with this attitude. He also stated that he doesnât expect to get bullied for the duties he is responsible for. However, another person stood up and commented in the favor of Westpac Banking Corporation. According to these key personnel, the bank currently works in an environment which is completely supportive to such employees who bring these issues to the notice. Also, this type of environment helps in boosting the ethical behavior, effective compliance as well as risk management and also promote strong corporate governance. The banks like Australia and New Zealand Bank (ASX:ANZ), Westpac, National Australia Bank (ASX:NAB) and Commonwealth Bank of Australia (ASX:CBA) are currently in the process of the report preparation which they need to submit by November end to APRA. The reports would be covering the self -assessment in regard to the governance as well as the risk cultures.
The risk manager which raised concerns has been facing a lot lately because of the issues which he has brought to the notice. His managers are not at all supportive of him in regard to the concerns. On the contrary, his performance reviews have been badly influenced because of raising the red flags. This event came to the notice of the risk manager because in the September performance review his ranking was âhigh exceptionalâ which helped him to bag a position among the top 5% performers. However, when he raised an alarm related to the project, the performance ranking slipped to âdowngradeâ in the December review.
The risk manager also stated that he has even approached the management people for the same and contacted the chief executive officer or CEO Brian Hartzer. It seems like he has not received the favorable response for the same as the CEO forwarded the concerns back to the human resources or HR department. He stated that responsibility for the issues has not been taken by anyone. This clearly reflects the unethical behavior in the bank.
At the time of writing, the stock price of Westpac is trading at A$26.640 per share which implies the fall of A$0.210 per share or 0.782% intraday.
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