Reputational Risk: protecting your bottom line

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

Course Details

As regulators begin to enforce new standards for senior manager behaviour (SMR), a new hybrid risk has emerged: reputational risk (a.k.a. reputation risk) tied to conduct regulation.  Reputation risk has always been with us, but was once the main business of brand managers, social responsibility and investor relations teams. Now regulators’ demand that firms produce reputation-aware “culture audits” has reset Board risk control priorities.

As a Director, it’s reasonable to be concerned: the new version of reputation risk is personal, as never before. Each Board member of a financial firm – and many non-financials too – now faces a real risk of prosecution under the new conduct rules.  Many Directors ask us, privately: Will the new rules encourage firms to rally in support of a senior manager who’s been challenged, or more likely to “throw them under the bus” to buy off the threat of enforcement action?

Agenda:

1.   Overview

  • Why the regulator has mandated reputational risk
  • The nature of the risk: limits on control; where to find its true costs and value
  • Control strategies that used to work – but now don’t. How to change our game
  • Hazards, old and new
  • Assuring “acceptable behaviour”: two simple methods
  • How “culture audits” set a new agenda for Board risk governance; overview of latest sector responses

2.   Sources of risk to reputation

  • Introduction to risk types
  • How other people (including customers and regulators) respond to your risk-taking; three vital moving targets; how to track them
  • What conventional analysis fails to capture: new tools for managing reputation risk
  • Protection from hidden risk: revealing when stakeholders don’t like you – but haven’t told you  
  • Transforming hazards to assets: refocusing misdirected controls, seeing “what matters most”

3.   Managing reputation risk with the new “culture dashboard”

  • Research update (April 2017) on the latest approaches to “culture audit”; which measures will keep the regulator happy?
  • Essential components: reputation and culture KRIs
  • A simple way for every employee to start “working reputation-risk-aware”, right now
  • Under-used reputational assets; how to make more of them
  • Why misconduct may thrive, despite efforts to stamp it out: challenging five “justifiers”
  • The most commonly missed early-warning signs of reputational risk
  • Three Boardroom biases that feed reputation risk

4.   Sustaining long-term reputational risk control

  • Consolidating reputation as a capital asset: “social licence to operate” as the key to survival     
  • New strategies for staffing in the “fake news” era
  • Practical tools all staff can use, starting now; engaging under-recognised skillsets
  • Latest predictive techniques (e.g. enforcement heat-mapping; sentiment webcrawlers; network analysis; delusion testing; big data pattern-seeking)

Who should attend:

If you are a senior manager and want to know more about how to effectively control this risk and satisfy the regulator about it, this interactive briefing is for you.  Led by Dr Roger Miles, who runs extensive first-hand research among financial firms on their various analytical approaches and reporting methods, the session will cover what the Board must include in ‘culture audits’, and how these inform and control reputation risk.

Key Benefits

  • Discover what’s driving the regulator’s focus on reputation risk: How ready is your firm to answer the regulator’s demands for “reputation and culture indicators”?      
  • Identify common sources and hidden hazards of reputational risk; and which MI / other sources inform robust “dashboard” reporting
  • Considering risk culture initiatives: which forms of intervention work and which should you avoid?
  • Identify sustainable strategies: learning from case examples of others’ successes and failures
  • Discover how Boards can most effectively act to demonstrate an ‘acceptable’ approach to reputational risks in their business?

Your consultant: Roger Miles

Dr Miles leads forum groups for the CRO and Conduct principals of many regulated financial firms at UK Finance, where he heads Conduct and Culture indicator research across the sector.

He regularly debriefs with leaders of UKF’s 300+ member organisations on their progress with ‘dashboarding’ behavioural risk factors, guiding as to how to set up indicators to ensure best practice in modern governance of risk.

He also lectures on risk perception and behavioural regulation (Cambridge University; UK Defence Academy; London Institute of Banking and Finance).  His latest book is Conduct Risk Management: A behavioural approach (Kogan Page, 2017).

 

 

 

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