LONDON/NEW YORK (Thomson Reuters Regulatory Forum) - As the banking industry and regulators turn to behavioural science tools to help improve the ethical cultures of financial services firms, financial professionals will have a chance to examine the progress at a Thomson Reuters forum in London on Thursday, June 28.
The practical real-world conversation, Bank of England’s Orlando Ruiz Fernandez, Technical Specialist: Governance, System and Controls, and industry leaders will consider cultural reform with a particular focus on the tricky issue of metrics and behavioural science.
The session at Thomson Reuters on Canary Wharf follows the enthusiastic response to the topic at a Thomson Reuters forum in New York. Regulators and industry leaders discussed how behavioural methods from fields such as organisational psychology are being combined with sophisticated technology to fight misconduct and encourage ethical cultures.
For example, behavioural science tools and techniques can give firms an insight into who in an organisation wields considerable influence. In some cases, it’s not always the most obvious people. Often mid-tier employees have considerable influence over a group’s behaviour, something that can be detected and observed by using such tools.
“We can actually find signals on who are the key influencers in the organisation, who are the most deeply trusted people,” Stephen Scott, chief executive of Starling, an applied behavioural science tech company, told the New York Thomson Reuters forum in April. By analysing the metadata of employee communications, one can uncover patterns that demonstrate which individuals wield greater influence and trust.
Taking the analysis a step further, if a key influencer is incompetent or appears to have bad intentions, the individual then poses a greater risk to his or her group, and the larger organisation.
“The moment we know that (an employee) operates with bad intent or is incompetent, or he actually doesn’t know what he’s doing, he’s quite likely to have a disproportionate effect on the institution,” said Mark Cooke, Global Head of Operational Risk at HSBC, another panel member at the New York event. “You start then to think about how you can react and drive a progressive organisation.”
Topics at the June 28 forum include:
-Enforcement culture: has it been effective in curbing misbehaviour?
-Employee surveillance and monitoring: how much is too much?
-Data science and predictive analytics: what are banks doing?
-Building trust with employees: can behavioural science help re-establish trust?
-Regulatory view: role of bank supervisors in cultural reform
-Wieke Scholten, Head of Audit for Behavioural Risk, RBS
-Ruth Wandhofer, Global Head Regulatory, Market & Innovation Strategy,Citi
-Orlando Ruiz Fernandez, Technical Specialist: Governance, System and Controls, Bank of England
-Alex Viall, Head of Regulatory Intelligence, Behavox
The moderator is Dave Curran, global director, Risk & Compliance, Thomson Reuters.
Understanding behavioural science can significantly benefit your business and culture. To find out more about the forum, please click this email link: firstname.lastname@example.org.
A video recap of the New York event can be seen at this link: here