Lloyds Banking Group reportedly has plans to cut some risk management jobs following a review which found the function was a “blocker” to its strategic transformation.

In a memo seen by the Financial Times, chief risk officer Stephen Shelley told staff last month that two-thirds of executives think that risk management is a hindrance to progress, while “less than half [its] workforce believe intelligent risk-taking is encouraged”.

According to the newspaper, the bank is “resetting” its approach to risk and controls, with the initial focus on “non-financial risks”.

Shelley went on to say that a new risk and controls model would help the bank “move at greater pace” with clearer roles and responsibilities.


Attributed to a Lloyds Banking Group spokesperson:

“To achieve the ambitious strategy we launched in February 2022 and to meet our customers’ evolving needs, we are transforming our business. The implementation of this strategic plan is well under way, and we are already delivering benefits.

"Making changes means not only creating new roles and upskilling colleagues in some parts of the business but also having to say goodbye to talented colleagues who have been a part of the Group’s success in the past," said a spokesperson from Lloyds Banking Group. "Where that is unfortunately the case, we will do everything we can to support them with the changes recently announced. In this case, there are around 45 role reductions, after new roles being created are factored in.”

There are around 153 roles at in the bank's risk division at risk of redundancy but with 130 new vacancies focused on specialist risk and technical expertise anticipated, the net loss is 45 jobs.

Lloyds Bank recently ramped up its shift to digital with the axing of around 1,600 branch roles.

The job cuts are part of an industry-wide trend to cut costs in tough economic conditions, despite a 2023 that saw many financial institutions draw profits.

Lloyds confirmed the cuts adding that the bank plans to create 830 roles in its ‘relationship growth team’ – an expanding part of the business that seeks to understand and provide support for customer needs across branches, video meetings and phone calls.

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