issue, deviations between employees ’ actual experiences and a firms ’ stated values, or observations of 2 / 5 bis central bankers'speeches inappropriate behavior that is tolerated or even rewarded can all contribute to the depreciation of a firm ’ s cultural capital. this decline can be self - reinforcing as certain behaviors are rewarded and individuals advance in an organization, or the composition of the workforce changes as employees choose to work at firms with higher cultural capital. the pandemic ’ s impact on cultural capital while the discussion so far has focused on how internal choices that a firm or its employees make can impact cultural capital, it is equally true that external factors have the potential to have a similar impact. for example, changes to social norms around what constitutes acceptable workplace practices can alter behavioral norms inside a firm. the nation - wide racial justice movement is another example of an external factor that could impact the internal culture, based on the choices a firm makes in its response. the current covid - 19 pandemic will also surely impact cultural capital in unpredictable and enduring ways. since march, our world and the financial industry have changed before our eyes. our workplaces were transformed overnight from offices to our homes. our office mates now include our spouses, kids, and roommates. and, our colleagues became voices on the other ends of our phones or faces on our screens. what does all of this externally - driven change do to a firm ’ s culture? in the early days of the pandemic, the financial industry and the official sector responded quickly and forcefully to ensure that the provision of critical financial services continued despite the tragic health crisis, significant economic and financial uncertainty, and substantial operational challenges. many were focused on solving the immediate problems and figuring out how to work remotely. this proved surprisingly effective, at least in the short run. from the perspective of cultural capital, this sudden and dramatic shift in how we work raises multiple questions. first, how does cultural capital influence outcomes in this new environment? how are we drawing on, or depleting, the cultural capital that already existed? does this environment pose new challenges regarding behavioral risk? and finally, is it possible to identify new opportunities to build cultural capital in a predominately remote environment? as we look across the industry, hear the experiences of firms and read the emerging literature, like the recent report by the uk fca, one can identify factors that are likely to impact, and possibly erode, cultural capital. 6 i

among work colleagues – and greater vulnerability tends to encourage higher levels of trust. we should all be thinking about how to ensure that we seize the opportunity to “ bake in ” these positive changes. conclusions 4 / 5 bis central bankers'speeches to conclude, as we look back on the past eight months and begin building the next normal, i think that the idea of cultural capital will prove to be enduring. the ways in which firms might invest in their culture will undoubtedly change in the new work environment and we ’ ll learn more about the long - term impact of the pandemic, but the basic ideas that culture influences business outcomes, that firms can build their culture through purposeful investment, and that culture can depreciate if left unattended will likely persist. to better understand this evolution, we should begin by examining each of the factors that determine a firm ’ s culture, pre - pandemic and post - pandemic, and identify the likelihood of events or practices that have the potential to build or erode their cultural capital. thank you for your attention. 1 misconduct risk, culture, and supervision, ” stephanie chaly, james hennessy, lev menand, kevin stiroh, and joseph tracy, federal reserve bank of new york, december 2017. 2 edgar h. schein, organizational culture and leadership ( 2004 ). for a context specifically related to supervision, see “ supervision of behaviour and culture : foundations, practices & future developments, ” denederlandschebank, 2015 3 mirea raaijmakers, “ interview : ing ’ s behavioural risk team seeks to uncover ‘ invisible drivers ’ of risky behavior ”, reuters financial regulatory forum, henry engler, january 10, 2020. 4 kevin j. stiroh, “ the complexity of culture reform in finance, ” remarks at 4th annual culture and conduct forum for the financial services industry, october 4 2018. 5 new york fed workshop on culture measurement and assessment, june 2017. 6 conduct, culture and covid - 19 ” cara bloomfield, peter ewing, olivia fahy, nafa ben haddej and ted macdonald, fca, june 2020. “ citi investment bank boss predicts resurgence of offices, ” financial times, may 2020. 7 how to prepare your virtual teams for the long haul, ” mark mortensen and constance noonan hadley, harvard business review, may 2020. 8 supervision of behaviour and culture : foundations, practices & future developments, ” denederland