Your Business Model - meeting the regulatory challenge

Date: On a date of your choice
Location: Delivered as an interactive briefing
Event Code: YBM

Course Details

The firm's business model peppers the language and documentation of regulation and the way, the FCA in particular, approaches supervision. It features within the Threshold Conditions for authorisation and is a prescribed responsibility in the SMF/SIMF rules. The regulators have learned that business models can also become toxic if they have evolved from a less than healthy culture. Can you respond adequately to the request to “Explain your business model and how it meets our standards?” In financial services it's easy to disregard them as just another regulatory burden. "We're a bank", "we sell insurance" and “we’re a broker". Our business process is simple; we don't need another burden of documentation. However, few firms in the same sector will look exactly the same. The concept of the business model has been widely accepted as management concept for decades, and at the heart of any sustainably successful firm is an explicit and understood business model. 

Agenda:

1.     Regulatory focus on the business model

  • Where and how it appears
  • Why there is such emphasis

2.      What is a “business model”?

  • More than just “an insurer/broker/bank/asset manager”
  • The basis of your competitive positioning

3.     Examples from within the industry and beyond

  • Customer centricity, core strength (and values)

4.     The components of a business model

  • Customer/product/competence focus
  • Business scope and definition
  • Identification and articulation: dependencies and the critical success factors

5.     Business model application and the key questions

  • Strategy and the business model: not synonymous but are they aligned?
  • Regulatory essentials: recognised customer needs and conduct risks?
  • Is it your competitive road map?
  • The risks to the model: industry disruptors

6.     Validating appropriateness

  • Is yours robust and appropriate?

Who should attend?

This is key to the role of any Director who must  be able to justify the business model the firm has adopted.  It will also benefit those who directly influence the business model: e.g. operations, IT, compliance and marketing.

Key Benefits

Attending this event will enable you to:

  • Recognise the elements of a business model and the risks and opportunities associated with it.
  • Understand why the PRA/FCA  focus on a firm's business model and its particular place within conduct risk
  • Know what underpins your business model: focus on products or customers, or do you have another source of competitive advantage?
  • Analyse the inter-relationships between the business model and strategy, culture and control environment.
  • Outline the tools that can be used to validate a business model.
  • Leave the briefing with the ability to assess the robustness and proportionality of your business and explain why it is suitable.

Your Consultant - John Constable

John has worked for many years consulting on regulatory topics and management development. A great communicator, he provides interactive regulatory, risk and financial briefings, bringing to them commercial awareness, credibility and pure energy.

He sees the best of business and the greatest areas of challenge within firms on a regular basis. His versatility allows him to use appropriate skills to lead groups of senior management providing current and relevant examples to illustrate points and draw parallels to clarify complex points.

John’s published articles have encompassed financial crime, learning and development strategies, operational risk management and Solvency II.

John has a BA (Hons.) History from Kings College London, he holds a Diploma in Management from Henley and is a Member of Chartered Institute of Personnel and Development.

 

 

 

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