For many firms, the Conduct regulator’s ‘Culture audits’ look like a short-cut to enforcement actions against Senior Managers. Seeing this as a Compliance risk, they design their Conduct and Culture programmes defensively. Because they perceive Culture as abstract and hard to measure, many firms fall back on traditional risk models – which are not designed to address human behaviour. However, by rolling out resource-intensive control processes aimed at “keeping the regulator happy”, firms are passing up a commercial opportunity to create long-term competitive advantage by basing their Conduct initiatives on fostering behaviours that also deliver long-term value.
We look beyond the traditional defensive stance and look to build and adopt a long-term, positive approach to Culture. Using robust science, we can now identify, measure and manage the underlying behavioural drivers of misconduct and of good Culture, showing member firms how to put these insights to work in ways that build business value.
A business value approach to Culture not only keeps the regulator on-side but yields far wider benefits, including keeping valued staff and clients for longer, fostering innovation and collaboration, to drive stable earnings growth, build durable capital value and create a resilient ‘social licence’.
Over breakfast with strictly Executive and non-Executive Board members, our Conduct and Culture specialists reveal how the latest behavioural insights and Culture assessment tools can transform staff engagement with the Conduct agenda. Taking firms beyond conventional Risk Frameworks and Culture assessment tools (the flawed methodology of ‘staff sentiment surveys’) towards a truly behavioural approach, this session presents a clear pathway to move ahead of the regulator’s expectations, minimise the risk of Conduct enforcement and simultaneously enhance business and strategic value. We identify the significant value-based behaviours and how to link these into financial value, in ways that you can discuss easily with staff, shareholders, clients and regulators.
By the end of this workshop you will be able to:
- Draw on new approaches to motivate your whole firm, thawing middle-manager ‘permafrost’ and re-engaging all staff to support strategic goals
- Identify key behavioural ‘tells’ for staff disengagement, and where most effectively to intervene against them
- Define enhanced Management Information, using the latest Cultural measurement techniques that produce leading (rather than lagging) indicators of Conduct Risk and highlight factors that both shape and reflect firm values to produce long-term success
- See where and how to show innovative leadership and introduce new competencies in Conduct management to address continual change in the regulatory environment, put the latest research insights to work to create strategic competitive advantage.
- Identify and profit from a latent and underused source of business value by rebalancing reward and recognition practices
- Briefing on: Regulatory agenda – UK Culture Transformation and global long view; new technologies for behavioural monitoring, insight, positive change, and full staff engagement)
- Achieving spontaneous support for good Conduct and Risk Culture
- FCA leadership expectations beyond the SMCR
- Debate around balancing technology (AI) and human behaviour levers
Who should attend?
Chairman, SID, NEDs, CEO, CFO, COO, CRO, CCO, General Counsel, HR Director, Significant Business Heads
- Culture Audit: What the regulator expects, and how to surpass this using the latest tools for behavioural insight (case study – Barclays initial approach to culture audit by using RISES)
- Why Culture is worth far more to your business than ‘Conduct compliance’ in the long run – linking behavioural competencies with financial value (Nokia)
- Effective interventions to build business value using a Culture focus (Culturescope)
- Motivation 3.0 – how to avoid triggering fear through ‘over-control’ (Daniel Pink and FCA Nov 2017 roundtable)
- Debate: The cost of leaders not taking a long-term value view
About the Trainers
A former British Diplomat, Investment Banker and Global Head of Strategic Projects at HSBC GCIB and EMEA head of Global Banking Compliance at Bank of America Merrill Lynch, Patrick founded Calitor Limited in 2012. He advises and coaches Executive Committees and boards of global and national financial services firms to enhance internal Compliance functions, build effective Conduct and Culture Enhancement programmes and strengthen risk management practices at all levels.
Patrick is co-founding faculty of the UK Finance Conduct Risk and Culture Academy launched in early 2018, which brings both retail and wholesale banks together to develop practical ways to meet emerging regulatory expectations, based on advanced behavioural understanding and practical expertise, leading edge tools and frameworks. He also provides bespoke Regulatory Risk Management development courses to financial institutions and key partners.
He is a non-Executive Director on the board of MIRIS AS, a Norwegian Real Estate company using Decentralised Ledger Technology to innovate financing of clean energy real estate projects and an adviser to Arkadia Lending, a start-up Peer-to- SME lending platform.
Patrick received his MBA from INSEAD in 1999 and also advises small and medium businesses undergoing substantial growth or change.
Dr. Roger Miles Roger Miles researches behavioural risks in organisations, including the regulation and measurement of conduct, culture and reputation. He counsels Boards on how best to communicate risk, uncertainty, and conduct matters, to overcome the limitations of conventional risk management.
Besides co-heading UK Finance’s Conduct Risk and Culture Academy, Roger continues to design and deliver the association’s highly rated in-house conduct and culture workshops, in the past year including individual research and debriefing with more than 3000 attested Senior Managers and Conduct practitioners. He has more than a decade’s experience producing university modules on organisational (mis)conduct, culture and risk perception, currently delivering these at Cambridge University and the UK Defence Academy.
His publications include behavioural risk briefing papers for Reuters; the introductory book Conduct Risk Management: a behavioural approach (Kogan Page, 2017); and the Dictionary of Key Concepts in the global annual Behavioural Economics Guides (LSE).
Take this training in-house
If you have five or more delegates who wish to attend this briefing, it may be more cost effective to run it in-company. To find out more about in-company training, please contact Philip Allen Director of Learning on 0207 216 8843 or firstname.lastname@example.org