Conduct and culture Programme

Workshop 3: Conduct and culture

Conduct Risk: Framework, best practices and innovation

Day 1 - 11 September

Full day trainer: Chris Van Homrigh, Independent Consultant; formerly ASIC’s Regional Commissioner for New South Wales and head of its Investment Banks team

08:30

Registration
09:00

Understand conduct risk - the fundamentals

  • People risk and conduct risk
  • The root causes of conduct risks
  • Who is affected by conduct risk?
  • What are the common failures?
  • Case studies
  • Misconduct on the trading floor – what have we learnt from the incidences?
10:30

Morning break 
11:00

Behavioural finance and practical application

  • Why do People make bad decisions?
  • Why is Behavioral Finance important – a quiet revolution
  • Global perspectives and principles of behavioural finance
  • Decision traps: how and why people make the wrong decisions?
  • Strategies in avoiding costly mistakes and making better choices
12:30

Lunch 
13:30

Define scope of conduct risk and risk appetite

  • Define misconduct for your business
  • Define the roles and responsibilities of conduct risk governance
  • Anticipate the impact of conduct risk to your business model and strategy
  • Conduct risk
    • Behaviour and culture
    • Adopting the top down and bottom up approach
    • How to manage conflicts of interest and undertake supervision
    • Aligning incentive and reward programmes
    • Communication and training
  • Codes of Conduct – how useful are they?
  • What does a risk appetite for conduct risk look like?
15:00

Afternoon break 
15:30

Identifying conduct risk in product lifecycles

  • What is product governance? An evolving discipline.
  • Who is the target market?
    • Understanding customer needs and their financial literacy 
    • Suitability and appropriateness of products or services 
  • Product design
    • Fairness and robustness of the product design and distribution process
    • Product disclosures
    • Stress testing
  • Product monitoring 
    • Accountability at each stage of the product lifecycle
    • Importance of complaints handling and remediation
  • Evaluating the governance processes around new products – how are they created, considered, signed-off, reviewed and retired
     
17:00

Summary & end of day 1

Day 2 - 12 September

08:30

Registration
09:00

Approaches to building a positive risk culture

  • Views on risk culture from across the industry
  • The importance of risk culture
  • What factors affect risk culture?
  • How can we influence and build a positive risk culture?

Kate Miller, Director, Conflicts of Interest & Conduct Monitoring Compliance, STANDARD CHARTERED BANK
10:00

Perspective on the management of conduct risk

  • Understand the environment
  • Identifying conduct risk
  • Measuring conduct risk
    • Data collection and usefulness of data
    • Statistical approaches, scenario analysis, scorecards
    • Cluster analysis, principal component analysis, big data
  • Managing and monitoring conduct risk
    • Establishing a conduct risk strategy/ framework
    • Embedding in the business
  • Other views

Dominic Wu, Managing Director, Senior Risk Manager, APAC, BNY MELLON
11:00

Morning break 
11:30

Enhancing due diligence capability for reputational risk protection

  • Reputational risk environment in Asia
  • Due diligence as a mechanism for managing reputational risk
  • How due diligence plays into the financial crime (AML/ CTF, Sanctions, ABC) regulatory framework in Australia
  • Changes on the horizon for the AML regulatory framework in Asia (AML/ CTF Rules changes / FATF Mutual Evaluation Report)

Dominic Wu, Managing Director, Senior Risk Manager, APAC, BNY MELLON
12:30

Lunch
13:30

Monitor, report, and review effectiveness

  • Define “success” of your conduct risk governance programme
  • Tools in monitoring conduct risk
    • Measuring the degree of ownership and organisation
    • Is the infrastructure adequate in supporting sustainable conduct risk management?
    • Flags and warning indicators
  • Reporting conduct risk
    • Governance, committee alignment and decision making
    • Assessing data completeness, accuracy and integrity
    • Dashboards, reports and aggregation
    • Develop communication mechanisms to management and the Board
  • Implementation and success factors
    • Conduct outcomes and assessment
    • Stakeholder relationship and industry collaboration

Dominic Wu, Managing Director, Senior Risk Manager, APAC, BNY MELLON
14:30

Afternoon break 
15:00

Q&A Session

Moderated by Chris Van Homrigh, Independent Consultant; formerly ASIC’s Regional Commissioner for New South Wales and head of its Investment Banks team

Kate Miller, Director, Conflicts of Interest & Conduct Monitoring Compliance, STANDARD CHARTERED BANK

Dominic Wu, Managing Director, Senior Risk Manager, APAC, BNY MELLON
16:00

End of course