Reputational and Behavioural Risk
Date: On a date of your choice
Location: Delivered as an online interactive seminar
Event Code: RBR051021
Regulators quote the latest behavioural research to
demand that firms give more ‘appropriate answers’ to the new challenges of
conduct control. Senior Managers must identify and answer, in person, for the
‘publicly acceptable and expected’ conduct of all staff, or face prosecution
for allowing ‘customer detriment’.
At the same time, regulators are raising new questions
about management of reputational risk. This risk flows from the ‘social
responsibility’ that both the FCA and PRA have high on their agendas. A firm’s
reputation is now subject to regulators’ demands to see reputation-aware
“culture audits”. These reflect changing priorities for Board risk governance
and firms’ response to social expectations.
For Boards, it’s reasonable to be concerned. Many
Directors privately ask us: Will the new Conduct rules on behavioural and
reputational reporting improve constructive challenge? Or, equally possible,
might they lead a Board to “throw a token Senior Manager under the bus”, to buy
off the threat of enforcement action?
As an attested Senior Manager, if you want to know more
about how to effectively control this risk and satisfy the regulator about
governance and reporting of these risks, this highly interactive briefing is
for you. The session will cover what the Board must include in behavioural
reporting, including Conduct dashboards and ‘culture audits’; and how the
controls of reputational risk affects prudential reporting.
Over time, from each
Board member ultimately to every employee, new insights are put to work until
general risk-awareness fortifies all three lines of defence, provides earlier
warning of strategic risk and uncertainty.
- What drives the agenda for ‘behavioural
regulation’; why regulators will expect firms to report reputational risk as a
new prudential control
- Behavioural control strategies that used to
work– but now don’t. How to change our game in response to hazards, old and new
- Costs and other business impacts of “bad
behaviour”; simple methods for assuring all-staff engagement in
“acceptable”(and better) behaviour
- How “culture audits” set a new agenda for
Board risk governance and reputation management; overview of latest sector
2. Sources of risk to reputation; the
‘risk-aware working’ response
- What is your ‘social licence’ and what do
regulators want you to say about it? How stakeholders (including customers and
regulators) respond to your risk-taking; three vital moving targets and how to
- What conventional analysis fails to capture:
How business leaders can overcome dependence on econometric models, and find
new MI that helps manage behavioural and reputational risk
- Under-used reputational assets; how to make
more of them; simple ways for employees to start “working
reputation-risk-aware” - transforming hazards to assets, refocusing misdirected
controls, and understanding “what matters most”
- Five unnoticed behaviours that lead firms to
collapse; new methods to prevent this happening. Easy ways to get all staff into risk-aware
working, protecting business value and reducing cost of capital.
3. Managing reputation risk with a Risk
- Research update on the latest approaches to
“culture audit”; which measures will keep the regulator happy? Essential KRIs
for reputation and culture.
- 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; how to avoid the three commonest risk-management fallacies
- Using powerful new predictive tools to
identify behavioural risk hotspots: what the behavioural lens reveals, that a
conventional risk picture doesn’t
Putting a risk-aware culture to work, for business value and reputational risk
- Consolidating reputation as a capital asset:
Practical tools all staff can use, engaging under-recognised skillsets
- What “good behaviour” is now expected of firms:
the new common ground between regulators, customers and investors
- The business and capital value of keeping
ahead of Conduct regulators’ ‘moving targets’: where to look for significant
- Living the Board Director challenge function;
leading a culture that protects reputation by rewarding the right kinds of
- Discover what’s driving the regulator’s focus
on behavioural and reputational risk: How ready is your firm to answer the
regulator’s demands for the “new indicators”?
- Understand where your firm stands in relation
to others’ Conduct programmes, and limit your personal Conduct liability, as
regulators look more closely at individual Directors in banking, insurance and
- Discover how the whole organisation benefits
from engaging the risk-sensing capacity of all staff, to manage reputation and
nurture Conduct-compliant ‘good behaviour’ naturally throughout the business.
- Identify sustainable strategies: learning
from case examples of others’ successes and failures, what actions should
Boards take to demonstrate their grasp of Conduct, Culture, and Reputational
reporting in their business.
- Discover how Boards can most effectively act
to demonstrate an ‘acceptable’ approach to grasping these risks, by locating
common sources and hidden hazards of reputational risk; and knowing which MI /
other sources best inform a robust dashboard report.
Your Consultant - Dr 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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