Conduct risk, ethics & risk culture compliance management

Published | Tuesday, April 17th, 2018


Use technology to better shape the behaviour of your organisation to get an A on your regulator’s scorecard

Regulators around the globe are cracking down on conduct, and therefore, organisations are looking to better enforce their code of conduct to ensure an ethical culture exists that can be measured and managed, with reputations being treated equal to profits, growth and consumer interests.

In the UK it is monitored as Conduct Risk by the Financial Conduct Authority, in the US as Corruption by the Department of Justice, and in many other jurisdictions regulators are demanding compliance officers to demonstrate their healthy compliance & ethics program.

But it’s not just a problem related to banking and financial services – organisations across multiple industries are under pressure to ensure their workforce understands relevant regulations such as health and safety, consumer privacy, conflict of interest, complaints handling and more, in a way that can prove to the regulator to be effective – and if not, risk reputational damage and large fines.

Introduction

Post-2008 financial meltdown, the regulators across the G20 countries were driven with a mission to find a better way to prevent individual behaviour that eroded integrity and resulted in a systemic financial disaster. Weak corporate governance was determined as a main culprit, with tone at the top, culture and behaviour being contributory factors, which has forced regulators to put the onus on organisations to prove they’ve considered conduct and ethics at a strategic level, and have put the governance and processes in place to mitigate the risk.

Common challenges for GRC professionals

  • Financial Consumer Protection is a broad mandate & without doubt also impacts industries outside traditional banking and financial services
  • Similar to regulatory frameworks such as Basel and Solvency, a one-size fits all cookie cutter framework does not exist
  • How do you capture board level considerations and make sure the trickledown effect reaches product design & other governance activities
  • How do you assess your organisation’s “risk culture”
  • How do you account for consumer impact and feedback to ensure positive outcomes

ACL Solution overview

  • Analyse operational data for trending in sales and other KRI’s
  • Analyse survey data and complaints for additional trending
  • Reinforce a healthy risk culture by paying attention to details
  • Centralise everything from board governance, to mitigation efforts, to customer feedback
  • Provide interactive, actionable oversight to senior management & the board

Click here to download the solution brief

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