The Financial Times reported that a memo sent last month to the bank’s staff by chief risk officer Stephen Shelley, outlined the intention to revamp the risk department.

The memo also included the apparent justification for the job-cuts, namely that two-thirds of the bank’s executives believe risk management was blocking progress.

“We know people are frustrated by time-consuming processes and ingrained ways of working that impede our ability to be competitive and leave us lagging behind our peers,” stated the memo.

The idea that risk management is a disabler of innovation and profit-generation is a notion that risk managers have long had to deal with.

This was evident in the financial crisis of 2008 when banks continued to invest in sub-prime lending despite the warnings from risk managers and their models.

Consequently, the risk management world has looked to spread the message that sound risk management can also generate revenue by allowing banks to take appropriate action based on more accurate modelling and knowledge of exposures.

However, according to Shelley’s memo, less than half of the Lloyds workforce believe that “intelligent risk-taking is encouraged”.

In a statement from the bank to the Financial Times, it said that the reorganisation will result in 45 “role reductions” after the new roles being created are factored in. The bank also stated that there will be “upskilling” in parts of the business.

The Financial Times also quoted a person “familiar with the restructuring” who said that around 175 permanent roles could be axed, 150 of which are in the risk division. However, the bank is planning to introduce 130 new jobs focused on specialist risk and technical expertise.

The move was criticised by the independent trade union, BTU, which represents Lloyds’ workers.

General secretary Mark Brown said the bank was “throwing the baby out with the bathwater” given that the bank is currently facing a regulatory probe into potential misselling of car loans and has set aside £450m for potential fines.