13. Supporting an Effective Risk Culture in Private Banking/Wealth Management

Each customer is unique. Starting from this perspective, the most recurring promise of the private banking/wealth management players becomes: “Each of our solutions is unique”. As argued in this chapter, the ‘Know your client’ principle and the standard requirements requested by the MiFID framework are not conflicting, but complementary and the second ones are a guarantee from the client point of view. While much less exciting, the most serious promise to the client should be: ‘We are able to keep your risks under control’, and this promise becomes reliable, if the private bank/wealth management unit’s risks are also under control. The private banking/wealth management business models sustainability highly depends on it.