Managing ‘people risk’: How the Board can lead and measure Culture

Date: On a date of your choice
Location: Delivered as an online interactive briefing
Event Code: MPRC071021

Course Details

Financial firms and regulators now broadly agree that a firm’s Culture determines whether its market conduct is deemed “acceptable and expected behaviour” by all stakeholders.  As a result, Culture Supervision is the new hot topic among financial regulators worldwide.

Not only in the UK but across the globe, regulators are starting to ask financial firms to demonstrate progress in improving conduct and culture.  Conduct regulators now charge firms with the responsibility to audit, calibrate and report on their own culture.  In the UK, the Senior Managers conduct regulation regime has recently extended, covering not only banks, but insurers, asset managers, consumer credit, specialist broking firms and their suppliers.  Firms are now mandated to spell out Purpose and to demonstrate “Conduct maturity” as the regulator audits their Culture, gauging how far Senior Managers are in practice taking personal responsibility for these aspects of governance.

Whilst the demand to report on Culture is clear, many firms struggle to test designs for acceptable Conduct and Culture report formats. There are, as yet, no officially specified Culture reporting formats – a point of frustration that leaves firms uncertain how to source or present MI to evidence their compliance. With trusted access to a wide range of firms testing various indicators, our course leader provides a qualified view on which trial formats are working and which are not.

Managers leading Conduct and Culture MI initiatives naturally want to know how likely the regulator is to rate their firm as “good”, as evidenced by Conduct and Culture report prototypes.  This workshop answers those questions, highlighting the regulator’s real expectations and citing questions asked by regulators during the latest round of audit visits and s166 Skilled Person Reviews, drawing on our presenter’s uniquely informed knowledge of firms’ Culture Audits, dashboards and indicators currently on trial.  This practical 3-hour briefing shows Board members the reportable connections between their firm’s Culture and business value; and how Directors can best use these tools to build market share and regulatory confidence.


1. Expected reporting on Conduct and Culture

  •  Why the new focus on Culture, from regulators and stakeholders?
  • What informs the “behavioural approach” to reporting and enforcement?
  • How Directors shape Culture; how subcultures defy this; overcoming barriers to change       
  • Enforcement trends: firms’ latest experiences of SMCR and Culture tests applied

2. Selecting valid and effective Culture indicators

  •  What the firm’s “new MI” needs to include
  • How to ensure that behavioural indicators are useful and valid

3. Practitioner examples of Conduct and Culture measures

  • The best of firms’ work-in-progress MI initiatives; sector benchmarks
  • What other indicators would best present our case?

4. Culture assessment as a source of business value

  •  Using a behavioural lens to protect your firm: predicting change in “expected behaviour”
  • Closing the costly gap between “expected” and as-found Conduct and Culture
  • Business value lessons from other Conduct-regulated sectors
  • Quick win actions: practical take-aways that rapidly embed best practice

Who should attend:

The Board and other SMFs (Conduct-attested Senior Managers) who are held accountable for Culture. This workshop style event is ideal for Directors wanting to recognise what is required, as well as leaders of key functions engaged in Conduct initiatives such as Compliance, Governance, Risk and HR.

Key Benefits

  • Examine how Culture and Conduct interact to build or destroy business value.   
  • Identify “acceptable and expected” Culture as perceived by the regulator            
  • Identify areas where Directors’ actions drive “good (and bad) behaviour in practice”, and MI sources and indicators for these.
  • Review how best to apply a range of Culture indicators that other firms are testing, to promote good conduct and resilient value; which techniques work, and which don’t?
  • Take away tools to use immediately to engage all staff’s spontaneous support in assessing Culture and building resilient business value

Your Consultant:  Dr Roger Miles

Dr Miles leads forum groups for the Conduct and Risk leaders of many regulated financial firms at the major professional associations, where he also runs sector-wide research into Conduct and Culture indicators.

He regularly debriefs with leaders of the associations’ 400+ member organisations on their progress with ‘dashboarding’ behavioural risk factors, guiding their Boards and Conduct principals as to how to set up indicators to ensure best practice in modern governance of risk.

He also researches and lectures on risk perception and behavioural regulation (LSE; Cambridge University; UK Defence Academy).  His publications include the popular handbook Conduct Risk Management: A behavioural approach (Kogan Page).


***** consistently rated 90-100% approval for engaging: ‘expert’, ‘refreshing’, ‘informative’, ‘well-delivered’, ‘useful’, ‘practical’, ‘interesting’, ‘thought-provoking’
“added hugely to our firm-wide ‘buy-in’ to the Conduct agenda”
“makes a potentially dry subject unexpectedly fun and involving”
“excellent delivery and made the subject very interesting”
“eye-opening to really understand the regulator’s view”
“very good to know in practice how we can develop culture and mitigate conduct risk issues”




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