It’s shocking, but it’s the truth.
Multiple news organizations reported this month that the UK’s Lloyds Banking Group is going to make significant cuts in its risk management function.
Background: Lloyds is one of the largest banks in the UK with revenue of £28 billion and next income of just under £5 billion. It has over 62,500 employees and something like 30 million customers.
It is in the process of a transformation project. According to the Telegraph, “Chief executive Charlie Nunn is seeking to overhaul Lloyds by cutting costs and driving up sales as the environment becomes harder for UK banks this year”.
Now for the truth.
This is what another UK newspaper, the Independent, reported (with my highlights):
Lloyds Banking Group is shaking up its risk management team in a bid to speed up transformation, as a top executive said some processes are time-consuming and blocking the business’s progress, according to new reports.
The restructuring will put a number of roles under threat of redundancy, but will create jobs in other areas.
Lloyds told staff it is “resetting our approach to risk and controls”, according to an internal memo sent last month from chief risk officer Stephen Shelley, seen by the Financial Times.
Mr. Shelley said two-thirds of executives think risk management is a blocker…
