Financial services executives around the world, including Australia, believe upholding their company’s reputation is more important than complying with government rules and regulations.

This is one of the findings of a new study of attitudes to corporate compliance and risk management by PricewaterhouseCoopers (PWC) and the Economist Intelligence Unit. The report found inconsistencies between complying with legal regulations and good risk management and suggests if a company doesn’t actively seek to uphold its reputation in today’s regulatory environment, it is taking a big risk.

More than half of the 160 senior financial services executives surveyed said reputation is more important than compliance when it comes to the welfare of their companies. PWC says the key to protecting companies against reputational risk is well-managed internal controls with an “embedded culture of compliance”.

The report also points to a gap between processes designed to keep an organisation in line with its regulatory obligations and the policies that are needed to protect and add value to the business.

“A new vision of compliance is needed to bridge this gap, PWC partner Sandra Birkensleigh said. “Embedding a culture of compliance within the very framework of an organisation is crucial.”