Lloyds Bank axes 'risk staff'10 Apr 2024 08:50
Lloyds Banking Group plans to cut jobs in risk management after an internal review found the function was a “blocker to our strategic transformation”
The restructuring was outlined in a memo last month from Lloyds’ chief risk officer Stephen Shelley, who said two-thirds of executives believed risk management was blocking progress while “less than half our workforce believe intelligent risk-taking is encouraged”.
The lender was “resetting our approach to risk and controls”, Shelley said in the memo, seen by the Financial Times, adding that “the initial focus is on non-financial risks”. A new model would enable Lloyds to “move at greater pace” with clearer roles and responsibilities, he said.
Loosening Lloyds’ risk controls “could potentially have catastrophic consequences for the future of the bank”, added Brown.
Lloyds is two years in to a £4bn, five-year investment plan to diversify its income away from mortgages towards income streams less dependent on interest rate changes including wealth management and insurance.
The lender, which has about 60,000 staff, has reviewed thousands of middle-management positions across its business in an effort to increase its focus on digital services. About 3,600 people work in the bank’s risk teams.