Description
Introduction
- What is risk culture and why is it important?
- How conduct risk fits into risk culture
- Defining conduct risk in clear terms
- Conduct is a cultural, not procedural issue
- The senior management regime and conduct risk
- A learned skill or just common sense?
- Creating the right culture
- Recent evolution and current developments
- Compliance as a partner not just “the enemy”
Conduct Risk – Initial Steps
- Establishing conduct risk appetite & drivers
- Greed versus fear
- Highly visible CEO engagement
- Clear ownership and responsibility for the programme implementation
- Embedding conduct into processes into the business
- Designing an internal audit and monitoring process to produce active engagement
- Setting timelines and responsibilities
Conduct Risk Drivers
- Conduct risk appetite & drivers
- Differentiating conduct risk from culture, ethics and compliance
- Comparing conduct risk with other risk types (operational, credit, market)
- Strategy: ethical culture, business model and ownership
- The language of practices that encourage and erode ethical work cultures
- Initiatives to reform culture within the financial services sector
- Tailoring according to; size, business model & geographic reach
- Operating model change and how to ensure an effective change management process
Conduct risk in a Financial Services Firm
- Wholesale market conduct risk
- Organisational culture vs risk culture vs conduct culture
- Market conduct risk
- What is market conduct risk?
- Why market conduct risk is important
- Drivers of market conduct risk
- How does market conduct risk manifest?
- Recent industry malpractices
- Regulatory expectations
- Strengthening the fundamentals – the three lines of defence
- Control environment considerations
Risk Culture & Behaviour Culture
- Developments in the supervision of behaviour & culture
- Foundational approach to strengthening risk culture
- Implications of the Dutch model for the supervision of behaviours and culture
- Making better decisions
- Improving group dynamics
- Assessing cultural change programmes
- Developments in preventing misconduct through utilizing a team climate perspective
- “Corrupting barrels v bad apples”
- Identifying social-psychological root causes of misconduct
- Improving your errors – management culture
- Lessons from other industries
- Utilizing just culture
- Identifying effective errors management processes
The Role of HR in Culture Identification & Management
- Talent management – how to hire those who practice good conduct
- Flexible rigour
- Diversity and reputational risk
- Remuneration
- Performance management
- Speak up/ whistleblowing conduct culture
- How can training be embedded in the organisation’s culture to enhance good conduct?
- Conflicts of interest, supervision, incentives and rewards, communication and training
Conduct Risk & Digitisation
- RegTech; catalyst for a host of strategic applications
- Industry next steps and market forces
- Regulatory horizon scanning and foreseeable risks
- Digitisation as a means to transform customer experience
