UBS’s Ermotti Says Fear of Mistakes Shouldn’t Paralyze Business

Posted by Anton Murray Consulting on 25 Sep, 2015

Jeffrey Voegeli

UBS Group AG Chief Executive Officer Sergio Ermotti told executives that a “degree of tolerance” for honest mistakes should be fostered so the fear of errors doesn’t paralyze business, according to a person with knowledge of the remarks.

Employees might avoid pursuing legitimate opportunities due to a culture of caution that has spread through banking since the financial crisis, Ermotti told about 300 executives in Zurich, said the person, who asked not to be named because the comments weren’t public.

UBS has paid dearly for employees’ misconduct since the financial crisis. The bank lost $2.3 billion through unauthorized trading and had to pay more than $2.8 billion for attempts to rig the London Interbank Offered Rate and foreign exchange rates. The lender pleaded guilty earlier this year to breaking the terms of a non-prosecution agreement.

UBS has since stepped up oversight of employees, including tightening the rules governing how they can trade securities for their personal accounts.

Employees should understand the difference between misconduct and honest mistakes, Ermotti said. Managers shouldn’t place staff under intense pressure to deliver on certain metrics because that can lead to inappropriate behavior, he said.

The Financial Times reported on the meeting earlier.


Latest market insights

Global X ETFs introduces US infrastructure development fund on ASX

› Read more

GDG confirms Lonsec acquisition 

› Read more

Australian Ethical to grow FUM above $12bn with new acquisition

› Read more

Total super assets climb past $3.8 trillion

› Read more

Active Super, Vision Super confirm merger date 

› Read more

X feed

Australian Ethical to grow FUM above $12bn with new acquisition:

Total super assets climb past $3.8 trillion:

Our client is seeking a manager for the Performance and Analytics team in Singapore, responsible for the leadership and management of one of the two reporting and analytics teams within the P&A function:

The successful candidate will have responsibility for providing Client Service Management and Operational support services for clients in the Alternative Unlisted assets industry including Property, Private Debt, Credit and Private Equity funds:

Sign up to our newsletter

Sign up to our newsletter

"*" indicates required fields

By subscribing to our newsletter I agree to the collection, use and disclosure of my personal information in accordance with our Privacy Policy