25 years: Behavoural science & conduct
In this video, Roger identifies the clear impacts associated with not risk-managing misconduct, and then inverts these same group of risks to build capital value and resilience within your business.
In this video, Roger identifies the clear impacts associated with not risk-managing misconduct, and then inverts these same group of risks to build capital value and resilience within your business.
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10 mins 51 secs
Misconduct comes in two forms; financial misconduct and non-financial misconduct. If these are not appropriately managed, in the long-run they impose heavy costs on your business. As a result, it is essential that businesses ensure an environment of psychological safety, corporate purpose and cognitive diversity. Firms who get these factors right, are always more successful in the long-run than those who ignore, or undervalue them.
Key learning objectives:
Outline the two key forms of misconduct
Identify the different impacts of these misconducts on your business
Outline the new set of indicators that conduct/culture regulators use to identify business health
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Any bad behaviour around selling your product. Common forms include:
Includes many forms of misbehaviour that don’t relate directly to the business of selling products, although they may well affect how your team sets about making its sales. For example:
This is the cash cost of dealing with the immediate fallout of a regulatory hit, after an enforcement against your business. This will impact your business in the following ways:
There is a capital cost whenever you’ve been hit by a regulatory action. Common forms may include:
The lost autonomy as a damaged business finds that it can no longer carry out the strategic decisions made by its senior managers. These may include for example:
These come under the general headings of Purpose and Value, the whole conduct project asks firms to take a fresh look at the way we report “what we’re really here for” and “what actually happens” in our business.
In the new era of culture audits, regulators look to see how wider stakeholders, not just shareholders or owners rate your business. Some of these include customers, staff, and suppliers. Each of these stakeholders must verify that you have a culture based on psychological safety, corporate purpose, social licence and cognitive diversity.
This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.