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Innovation and Best Practice
for Business Success

Established 1967



Conduct Risk Management

Conduct Risk Management

Using a Behavioural Approach to Protect Your Board and Financial Services Business

Roger Miles

£44.99

Gives financial service providers the practical tools they need to understand the hidden drivers of behaviour, de-bias their customer offering and so avoid fines and imprisonment under the conduct regime.

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About the book

Conduct risk is at the core of behavioural regulation, a new approach to regulating financial services, whose new agencies and public prosecutors have spread rapidly across the world. Its prosecutors intervene assertively to challenge financial service providers to show clear evidence of a new customer-centric approach, which understands and responds to the hidden drivers of customer behaviour. They use their unprecedented powers to levy very large fines and even to imprison wrongdoers - often for not taking precautions rather than for any active wrongdoing. Conduct Risk Management is a tool for recognizing, acting on, and predicting conduct risk impacts in regulated business.

Conduct Risk Management sees beyond econometric and other 'box-ticking' traditions of risk management. Whilst protecting senior managers, it helps all staff to make positive use of conduct risk to promote behaviour the regulator will accept as 'good', as good behaviour is good business. The new conduct regulations personally affect every manager in financial services, and their suppliers, with new regulations making senior managers liable to imprisonment for failures in organizational conduct. Conduct Risk Management sets out plainly what practitioners need to know to understand the regulator's intentions, to prove compliance, protect competitiveness and maintain licence to operate.


Table Of Contents

    • Chapter - 01: Time for a fresh approach;
    • Chapter - 02: Behavioural science sets regulators thinking;
    • Chapter - 03: The onset of financial conduct regulation;
    • Chapter - 04: Why regulators had to change direction;
    • Chapter - 05: The roots of misconduct;
    • Chapter - 06: The politics of prosecution: conduct rules go global;
    • Chapter - 07: Establishing what your ‘good behaviour looks like’;
    • Chapter - 08: The ‘behavioural lens’, part 1: wide view;
    • Chapter - 09: The behavioural lens, part 2: staying ahead of the regulator;
    • Chapter - 10: Looking back, looking ahead



Reviews

With the latest shocks to unsettle the predictable and rational world of deterministic and logical data-driven assumptions analysis, culminating in our inability to foresee Brexit and the rise of Donald Trump, financial practitioners would be well advised to pick up, discuss and take note of the behavioural approaches outlined in Dr Miles's Conduct Risk Management. The tools in here will help practitioners get themselves 'match fit' for managing risk in a world where almost everything you thought you knew may turn out to be wrong.
Dr David Hancock, Director HM Government Cabinet Office – Infrastructure and Projects Authority; former Head of Risk for TfL

Dr Miles has important and timely lessons for the effective management of corporate risk, but this book goes well beyond a narrow risk focus and, with its application of and insights from behavioural science, will be of interest to students and practitioners of ethics, culture and conduct in financial services and, indeed, more widely. I'd encourage all bankers, regulators and students to read this book, which balances well academic study with practical, real-world lessons and conclusions.
Simon Thompson, Chief Executive, Chartered Banker Institute

A refreshingly enjoyable read, but more than that, a timely expert insight into why and how the financial sector has to change fundamentally the way it engages with politics and public goods. This change of outlook has implications far beyond financial markets - there are valuable lessons for policy-making at the highest level.
Matthew Taylor, Chief Executive, RSA; Head of the Prime Minister’s Employment Law Review, 2016

A lively, interesting and very practical guide to understanding how regulators think, and getting on the front foot ahead of conduct risk. Using Dr Miles's techniques to 'work risk-aware' makes good business sense, is highly engaging for all business people and is certainly a better basis for effective compliance than old fashioned box-ticking.
Scott Wallace, Chief Risk Officer and Executive Director – Governance, Legal, Risk & Compliance

Many practitioners are at a loss how to deal with Conduct Risk, yet clearly it's a vital topic to understand, now that the threat of prosecution hangs daily over every senior manager. Roger Miles is one of the very few genuinely expert sources on what the science of 'behavioural regulation' means for day-to-day business practice. This is a great opportunity to gather his insights, and enjoy his lively curiosity about where regulation comes from and will take us to next.
Donald Macrae, Senior Consultant on Regulatory Reform, World Bank

Roger Miles has done an excellent job of animating and explaining in plain English this challenging area of regulation. His book should therefore be essential reading for any compliance and risk professional in order that they better understand the nature of conduct risk and how to mitigate the risks arising.
Brian Harte, Managing Director, Berkeley Research Group; former Group Head of Compliance and Regulatory Affairs, Barclays


Book Details

  • EAN: 9780749478612
  • Edition: 1
  • Published: 3rd January 2017
  • Paperback
  • Dimensions: 234x156
  • 312 pages

About the Author

Dr Roger Miles researches behavioural risk and the impacts of conduct regulation. He counsels Boards on human risk factors and uncertainty, and delivers bespoke risk workshops for leadership groups in government, NGOs and the professions. He teaches risk-related psychology at graduate schools including Cambridge University and the UK Defence Academy. He co-edits the LSE's annual Behavioural Economics Guide and publishes best practice guidance notes through professional bodies including British Bankers' Association (BBA), the Association of British Insurers (ABI), Global Association of Risk Professionals (GARP) and the Institute of Operational Risk (IOR).


Roger Miles


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