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risk management has got to become part of the culture and ethos of the bank and the way it's got to change is basically people have got to stop viewing it as the preserve of the chief risk officers office I don't think managing risk in a bank is solely the responsibility of the chief risk officer or CRO or the risk management department or save the middle office or finance or regulatory reporting I think everyone who works in a bank is a risk manager banking is managing risk is managing funding risk and capital risk and the head of corporate banking is as much a risk manager as the CRO so the culture of risk or risk management with a bank has got to move towards that thinking they're thinking that everyone is in the same boat and we should all have an eye on the risk tolerance and the risk reward profile of the bank we happen to be working in and we should work towards managing it and maintaining it to within acceptable proportions I think one of the key problems one of the key problems leading up to the crash was that this was lost sight of the culture of the institutions ceased being so much about managing risk and more about a growth PNL generation revenue generation and grew an asset growth so if you change the culture into one work there is more of risk management or geared towards risk management for everyone whether it's the corporate bank or the risk management office or the retail bank or the investment bank then as a whole the institution will be easier to manage from the point of view of the chief exec of the Board of Directors it's easier to manage and maintain an ability to to manage risk if everyone has that as their focus and I do think the culture needs to change to one that is more geared towards risk management being what every single person or indeed the heads of every department are involved with and not just something that is maintained by or the preserve of the CRO s office the risk management department and people who work outside the front office in the short term most probably not but I do think it's a it's an issue that we should be looking at and I know that it's an issue that regulators and central banks and governments are considering but the problem is how you get towards some optimum solution that's an alternative from where we are now where everything has a result of the crash of 2008 has been essentially underwritten by the taxpayer we saw in 2008 when banks failed that the sovereign authorities the national governments had to come in and bail them out and of course that means all the exposures all the risk of the backing sector is basically something that the taxpayer is on the hook for now is that something that's desirable going forward well in an ideal world no in an ideal world any private sector enterprise would not be backstopped by the taxpayer but of course banking is such an important industry when banks fail whole sectors in the economy fail with it so that's why there is a public sector lender of last resort that's why central banks exist to provide a lender of last resort facility when banks get into trouble but generally that should be when they get into liquidity or funding trouble not when they get into capital base trouble ie when they're defaulting because they themselves a bankrupt because their capital base has been eroded if you want to deliver or you want to look towards an alternative to the public sector and lender of last resort the solution probably would lie in an industry funded backstop facility whether it's a central bank for a ring-fenced fund where that is funded by the the banks themselves and which is available to bail out banks in trouble where that's proposing some sort of systemic risk now that's not something one could deliver or or implement overnight it would probably take some time and agreement across borders before we can set up some sort of facility like that but I do think it's definitely an ideal goal that we should be working towards I don't think that taxpayers should be on the hook indeed for any industry when they're if they're failing so if we can implement some sort of system whereby there is a backstop facility to save failing banks or systemically important failing banks and which is funded by the industry itself there that's probably an ideal solution and in fact if it is funded by the industry itself that would have a knock-on side bonus or side benefit in that the risk management culture of the bank's themselves would be that much more finely tuned towards making sure one didn't get into trouble if you're paying for your insurance yourself you're probably more likely to be a little more careful in what you're engaging in then if you knew that you would just be bailed out if you did make some mistakes and so there could be more systemic stability as a whole if you're able to move into that sort of system but it's probably some way off the time being