Sure, U.S. banks are no strangers to the danger of reputational risk stemming from poor internal controls—but when your CEO is the pope, really, the risks of losing your moral authority with the public are that much higher.
Such was the problem confronting Istituto per le Opere di Religione (IOR), more commonly known as the Vatican Bank. Founded in 1942 by Pope Pius XII, its purpose is to accept deposits from within the Vatican—including clergy, religious orders, and diplomats—and serve as a facilitator for charitable efforts around the world. It currently holds nearly $7 billion in assets on behalf of roughly 17,000 customers.
