Change, culture & risk: a primer for financial services executives with agendas

RMA Journal, The, Dec, 2003 by Thomas R. Hofstedt

"Risk Management and the Credit Culture--A Necessary Interaction," by P. Henry Mueller: originally appeared in May 1993 in the Journal, reprised in a Special Collection; reprised in December 2001-January 2002.

"Linking Credit Culture and Risk Management Strategy," by John McKinley: originally appeared in November 1991; reprised in a Special Collection; reprised in February 2002.

"Credit Culture, Parts 1-3," by Dev Strischek: "What Is It?" (November 2002); "Types of Credit Cultures" (December 2002-January 2003); "Changing Direction & Implementing a New Credit Culture" (March 2003).

"Put Values to Work to Strengthen Your Credit Culture," by Sandra L. Williams: March 2003.

"Value-Building Lessons of the 1980s," by David C. Cates: September 1993.

"How to Maintain Asset Quality During Periods of Asset Growth," by Joseph May: November 1993.

"Risk Policies and Standards: Definitions and Details to Support a Quality Credit Program," by Peter Larr: December 1993.

"Merging Credit Cultures," by John McKinley: March 1997.

Special Edition of The Journal of Lending & Credit Risk Management, June 1997: features a number of reprised articles.

"Credit Culture: Transition or Stagnation?" by John E. McKinley: March 1998.

"Compensation and Bank Culture," by Peter Larr: March 1998.

"Credit Management Weaknesses in Emerging Economy Banks," by Gail Buyske: July 1998.

"Cycles & the Credit Culture," by P. Henry Mueller: reprised December 1998 (originally published in 1995).

Gap Analysis

Value Dimension     Today        Desired State

Loyalty           Unit           Bank-wide
Focus             Size, growth   Quality, profits
Risk taking       Aggressive     Conservative
Style             "Wing it"      Professional
Decision making   Make the #'s   Do what's right

Thomas Hofstedt, Ph.D., is an international management consultant with projects and clients in the public and private sectors. During the past 20 years he has developed a specialty in international and corporate banking, with a concentration in credit policy and strategic planning. Domestic clients have included Bank of America, Wells Fargo, RMA, Federal Home Loan Bank Board, and others; he has also worked with banks in Scandinavia, Eastern Europe, Turkey, Russia, and Mexico.

Hofstedt can be reached by e-mail at Trhofstedt@aol.com.