Australia’s ANZ Group is under pressure to overhaul its risk-management and corporate culture after an independent review found that staff were reluctant to raise red flags and accountability was weak.
The review, commissioned following a record A$240 million penalty from the Australian Securities & Investments Commission (ASIC) linked to a flawed A$14 billion government bond issuance, revealed that ANZ’s “good-news culture” discouraged frank discussion of problems and that decision-making was delayed by overlapping responsibilities.
As Australia’s fourth-largest lender by market value, ANZ has engaged consulting firm McKinsey & Company to conduct a cultural review and risk-remediation programme. The bank’s new chief executive, Nuno Matos, who took the helm in May 2025, has identified simplification, stronger tone-from-the-top and improved risk governance as priorities.
For the insurance and banking sectors, the case serves as a warning: weak non-financial risk frameworks—especially around culture, escalation and internal accountability—can have material commercial consequences. Regulators globally are increasing scrutiny of banks’ non-financial risk practices, and ANZ’s situation underscores the need for institutions to ensure risks are identified, escalated, and addressed promptly.
