Designing an MCS for NAB_Cultural Controls

Then present your cultural controls design. Please do not provide recommendations. (Wordcount: 250) use the issues I have highlighted and addressed here to design cultural controls (Note: MCS design must attempt to address problems with the organizations’ strategic and operational activities, and the organizations’ control problems. Use this sub-section carefully and be mindful of your word count used here. Tables and other summary tools may be used in this section – make sure that you link some written text to your tables and tools to make them relevant.) 1. NAB had issues that were not consistent with its mission. They failed to maintain policies, procedures, and systems ensuring services were provided as promised, failing to ensure staff training and competence to provide financial services (Frost, 2021). (Cultural control issue) 2. NAB was not in line with its values because AUSTRAC increased its scrutiny investigating non-compliance with anti-money laundering laws (Ferguson, 2021). These issues involved getting customers onboard without completing know your customer procedures (ibid). (Cultural control issue) 3. Through this, it can be seen that corporate governance and the regulatory environment face rapid change and a complex approach. According to Philp (2006), corporate governance requires understanding the social dynamics at work, such as groupthink. To achieve successful and effective corporate governance, it is necessary to understand the various environments in society and solid policies (ASX Corporate Governance Council, 2014). Also, NAB has established a new team on its Board of Directors with specific initiatives for sustainable development. (Cultural control issue) 4. Due to the distorted reputation of NAB, its focus is to ensure proper compliance controls and addressing challenges through Band-Aid fixes instead of long-term solutions (Ferguson, 2021). Also, NAB deflects and defends its reputation through regulatory obligations while promoting a corporate culture which has been a challenge in the organization. ((Cultural control issue)