“SENIOR MANAGERS” WILL NOT BE PREPARED TO BE HELD ACCOUNTABLE UNLESS THEY HAVE CONFIDENCE THAT THEY HAVE ALL THE INFORMATION THEY NEED
Pertinent and focused Management Information (MI) is one of the most powerful tools for effective conduct risk management. Without it, managers, and the institutions they work for, will be unable to identify and mitigate risks before they crystallise. Instead they will be left dealing with ever rising cost of conduct (£200 billion per year at the last count) after the event.
81% of firms are still unclear about what conduct risk is and how to measure it. Unless you know what something is, you cannot generate metrics, gather data and report it. Most importantly, you certainly cannot confidently attest to it, under the new Senior Managers Regime, to a supervisory authority. In order for a manager to willfully take accountability for their department, they must have all the required conduct metrics available to them.
Ex-FCA supervisor and Parker Fitzgerald Director, Simone Meloni, says “a conduct risk framework must be unique to any firm’s specific business model, providing metrics that evidence the appropriate culture and business strategy”.