Company culture to foster compliance
A company’s culture should be a priority when building effective and long-term compliance programs. In fact, it is vital considering the constant fraud, misconduct, and compliance risks that financial institutions face today. After all, it is the people who determine a company’s performance.
This article is based on Daniël Smidts’ presentation during our conference Compliance Disrupted 2021. You’ll find the recording of his presentation on the bottom of this page
Focus on soft components
The biggest financial institutions in Europe are now shifting their focus of backward-looking supervision, primarily focusing on financial risks and control, to more forward-looking aspects like reviews of business models, board effectiveness, and most imporantly: behavior & culture. Embedding the soft components of culture with the hard components of compliance and risk programs may not be a regulatory expectation, but local regulators will soon adapt.
Nordic challenges and possibilities
In the Nordics, many organizations struggle with siloed frameworks with no connection to behavioral aspects, which provides an incomplete approach to compliance. The soft components of overall risk programs have been neglected, due to a lack of understanding and a lack of regulations.
On the other hand, the rapid adoption of GRC (Governance, risk management, and compliance) technology and the enhancements made to underlying frameworks in the Nordics, provides a small window of opportunity to connect cultural aspects to said frameworks.
Watch Daniël Smidts’ talk “Disrupting behavior” to learn more about the dos and don’ts of building robust GRC frameworks and the use of technology, while embedding cultural components.
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