Lloyds decision to cut risk staff draws criticism, defenders

Lloyds Banking Group planned to cut jobs in its risk management function after an internal review found it was a “blocker” to the organization’s strategic transformation, according to a report from the Financial Times.

In a memo seen by the newspaper, Lloyds’ Chief Risk Officer Stephen Shelley said two-thirds of executives believed risk management was blocking progress while “less than half our workforce believe intelligent risk-taking is encouraged.”

The bank was “resetting [its] approach to risk and controls” so Lloyds could “move at greater pace,” with a focus on nonfinancial risks, the memo added.