Smoke may come from multiple fires

When you discover a weakness in one of your control systems and fix it, do you proclaim success and return to normal operating status?  May be you should look around a bit more.

“Wells Uncovers More Abuses,” The Wall Street Journal, April 6, 2017 B6.  Wells Fargo, home of the account-cramming scandal affecting retail banking customers that led to the CEO’s resignation and his bonus being cancelled, finds it had other problems, as well.  Appears the merchant service business division was inflating data and potentially misleading commercial customers, much as the retail banking division had.

What might it say about your culture if two widely different divisions were both engaged in cheating their customers?  Are there gaps in your control systems?  How do you fix the deeper problem?  At least they’re still looking (or at least finding).

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Filed under Compliance, Compliance, Controls, Culture, Governance, Internal controls, Management

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