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Regulators are urging firms to review and measure behaviour to show how their businesses' culture is socially useful and inclusive.
With public trust in financial services remaining brittle, a grasp of conduct risk is a high priority. Using new tools to assess firms’ culture, the regulator is now looking more closely at how firms treat customers and their own colleagues, applying new standards and measures of 'non-financial misconduct'. Now, more than ever, it is essential for compliance, risk and human resources leaders to know how regulators apply psychology when assessing firms’ risk controls, understanding of Consumer Duty and fair management of colleagues.
The regulator’s case officers are now prepared to ask about firms’ front-office colleagues' awareness and experiences of ‘corporate purpose’. Firms will be expected to show steps taken to reinforce security and public trust, to prevent financial and non-financial misconduct, whether under in-office or under hybrid working conditions.
Your colleagues will all be expected to recognise misconduct in all its forms, and to challenge it without fear with the firm reporting credibly on ‘psychological safety’, positive leadership and diverse thinking.
While the new regulatory approach may seem daunting – and short on practical detail – there is at least a business trade-off: working conduct-aware creates measurable business value (besides the clear compliance benefits of getting it 'right first time').
Conduct and Culture Programme: Conduct framework – right first time
Led by the UK example, regulators worldwide are increasing the pressure on managers in financial firms to show they are performing their roles effectively, giving due thought to risk culture, aligning rewards with socially-aware corporate purpose and showing an informed understanding of human behaviour.
The regulator’s new ‘behavioural’ approach is examined in our one-day, fully hands-on workshop. We will cover the essentials of conduct risk, including under hybrid working and what your firm needs to do to discharge its responsibilities. These sessions are also popular as an opportunity to share and learn from the varied experiences of other practitioners attending.
Conduct and Culture Programme: Assessments of conduct and culture
Leaders of conduct and culture assessment initiatives often ask us whether their firm’s approach to these is worthwhile, both in relation to business value and building credibility with regulators. This full-day workshop answers these concerns, providing a uniquely informed insight into the FCA’s practical approach to assessing culture within its conduct assessments, the most effective methods used in other regulated financial firms; lessons from comparable experiences in other regulated sectors, and which of the new assessment tools and techniques deliver greatest business value in use.
Dr Roger Miles researches human-factor risks among regulated financial providers worldwide, helping steer their responses to new Conduct regulations, ...
Dr Roger Miles researches human-factor risks among regulated financial providers worldwide, helping steer their responses to new Conduct regulations, Culture Audits and capital charges against Reputation Risk. He convenes knowledge sharing groups of senior executives including forums at UK Finance, whose Conduct and Culture Academy he co-founded in 2017.
Following audit practice with PwC he advised the Boards of large publicly listed companies in the UK, EU and US as a partner in investor relations firm Georgeson & Co. He was Director of Communications and Enterprises for the BBA (under Sir Brian Pitman), UK corporate affairs lead at FBE in Brussels, and later a Head of Risk Communications in HM Civil Service, before giving all that up to requalify as a risk psychologist and university lecturer.
He frequently works by invitation directly with firms? senior leaders on in-house initiatives to develop their frameworks for conduct risk and culture.
With research among more than 400 firms participating in UK Finance Conduct sessions since 2016, he has amassed a unique exemplar body of conduct programmes, reporting designs, indicators and definitions. He welcomes sharing these insights with UK Finance attendees, to inform discussions of ?exemplary practice? in measurement and reporting on conduct, culture and reputation.
Session attendees consistently rate him 5* / 95-100% for ?expertise?, ?ease of understanding?, ?open and engaging?, and ?enjoyable experience?. Each year he leads small-group interactive workshops for more than 1000 attested Senior Managers in financial firms; since 2010 he has taught one-to-one or in small groups, 10,000+ leaders and divisional managers in financial, professional and government service.
His research often uses language analytics and specialist 'sensitive topic research? techniques to identify previously unvoiced concerns. These findings, unique to each firm, guide the design of the firm's framework of human-factor risk indicators and reports, encouraging the start of productive ?conduct conversations? at all levels, embedding spontaneous best practice in risk reporting.
He lectures as a visiting SME at business schools in Cambridge and London, and at UK Defence Academy; and moderates cross-industry working groups for Board appointees, Compliance, Legal and HR professionals.
His published work includes the financial sector's popular handbook Conduct Risk Management: A behavioural approach (2017) and Culture Audit: Reporting on behaviour to conduct regulators (2021), which includes chapters co-authored with senior regulators in the UK, EU, US and APAC. (Both titles available to UK Finance session attendees at a special discount). He co-edits the Encyclopaedia of Key Psychology Concepts for the London School of Economics annual Behavioral Economics Guides and is a contributing editor at Thomson Reuters Regulatory Intelligence.
In 2006-7, using live observation and narrative research, he analysed how banks were ?gaming? their public reporting on regulatory capital. King's College London awarded him a PhD for this work, whose theory was validated abruptly when global financial markets crashed in 2008. In 2010 he accurately predicted the change of financial regime to ?behaviour-based regulation?; the UK's Conduct regime launched in 2013 and included core principles he had earlier identified.
Attending this focused one-day workshop will help you:
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