‘Servant Leadership’ as a Risk Management Tool

A team-first “servant leadership” approach can strengthen a bank’s risk management by clarifying responsibility, improving communication, and reducing handoff failures or policy misinterpretation. That’s the case made by Christy Foster, executive director of loan operations at United Community Bank, who shared practical guidance during a presentation to ProSight’s RMA Gulf Coast Chapter.

Servant leadership asks managers to “serve first” and “lead second,” shifting away from rigid, top-down control toward listening, trust, and team-generated ideas. Foster acknowledged this can feel counterintuitive in regulated, high-stakes environments, but argued it mirrors risk practice itself—recognizing issues early and addressing them before they escalate. “Servant leadership is not weakness. In fact, you must be strong to lead from this position,” she said.

Key takeaways:

• Trust changes escalation behavior. Foster said when trust is higher, employees are more willing to raise concerns and challenge exceptions that fall outside policy.
• Servant leadership supports governance rather than replacing it. Foster emphasized that it does not replace formal policies or procedures, but reinforces governance by building confidence in early checks and encouraging consistent communication.
• Agenda-free listening can surface problems sooner. “I hold twice-a-year listening sessions with my teams and meet more often with my direct reports, and I do not provide an agenda,” Foster said, describing a practice designed to make concerns feel safe to raise, even when not every request can be addressed.
• Start with a small set of repeatable habits. Foster suggested beginning with practical steps: schedule regular one-on-one meetings, normalize everyday risk conversations, reward early escalation, close the loop so employees know issues were seen and addressed, and intentionally build trust.

As Foster put it, managing becomes more like coaching. “Don’t just jump to conclusions. … Make sure you get their perspective and use that in your coaching.”