Andrew Bailey, the incoming head of the UK Financial Conduct Authority (as of July 1, 2016), expressed his belief that “hubris risk” or the risk of “blinding over-confidence” is among the most dangerous of risks banks confront daily and that it only can be addressed through adoption of a strong culture. In a speech before the City Week 2016 Conference in London, Mr. Bailey noted that there is a correlation between culture and bad outcomes, “for instance where management are so convinced of their rightness that they hurtle for the cliff without questioning the direction of travel.” According to Mr. Bailey, “there has not been a case of major prudential or conduct failing in a firm which did not have among its root causes a failure of culture as manifested in governance, remuneration, risk management or tone from the top.” Mr. Bailey, who currently is deputy governor and chief executive officer of the UK Prudential Regulation Authority, claimed that regulators can’t force a good culture onto banks. However, he applauded the introduction of the new Senior Managers and Certification Regime in the United Kingdom, which he said would make senior managers more personally responsible for the affairs of their firms. Mr. Bailey observed that while there have been major changes in banks’ culture in the past few years, “public opinion does not recognise these developments and tends to think that nothing has changed.” He urged banks to continue their progress in developing positive cultures, which includes ensuring there are “appropriate challenges from all levels of [an] organization.”