There is more scrutiny than ever on the risks to an organisations success that are related to the conduct of its people and the culture of the organisation. Regulators around the world are asking organisations to invest in tools that enable them to effectively monitor, measure and mitigate risks in these areas.

In the Information Paper of Culture and Conduct Practises for Financial institutions, MAS sets out its approach to culture and conduct, providing examples of acceptable best practises to consider; a Culture and Conduct Dashboard (CCD)being one of them. To deliver on their responsibilities, it’s essential that the Board and Senior management have the appropriate information at their fingertips and that it can be used to drive meaningful insights, identify risks, and steer initiatives to shape positive behaviours.

In a drive to promote a standardised approach across the Industry, guiding principles for designing such dashboards have been set-out in a recent paper written by the Association of Banks Singapore (abs)[1]. Selecting a balanced set of indicators (or metrics) to measure organisational culture that impact conduct is key. Being able to monitor metrics over time allows trends to be identified, and emerging risks to be flagged before they become critical. Relating metrics to each other and coupling these to appropriate programmes which drive corrective actions helps towards mitigating associated risks. A Culture and Conduct Dashboard is seen as an effective way to capture this essential information and empower an organisation to execute on its Culture and Conduct Strategy.

At KRM22 we have created a series of dashboards that enable senior management and departmental heads to do just this. Our culture and conduct risk management tool, the People and Culture Risk Cockpit (PCRC) has been designed to enable firms to measure risks related to organisational goals, objectives and initiatives using metrics linked to behaviour, culture indicators and wider strategic culture and conduct related areas such as D&I and employee engagement.

The PCRC acts as a central repository for Culture and Conduct Risk related information, integrating with data sources across the organisation. Metrics are updated on a regular basis to keep management continuously informed and ensure timely corrective actions are taken when needed. This is an intelligence led approach to risk management, that gives the senior echelons of a bank the ability to deliver their strategy, protect the brand, be regulatory compliant and perhaps most importantly, create and grow an organisational culture in which people always do the right thing.

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If you would like to know more about KRM22’s approach to managing Culture and Conduct risk, please contact Alice Pocklington, Business Development Manager (alice@krm22.com) or Chris Cherrington, Head of People and Culture Risk (Chrisc@krm22.com)

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[1]Industry Practice Note – Culture & Conduct Dashboards May 2021

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