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Regulatory Challenges
Will Amos
March 2016
Overview
Culture
Strategy
governance
SMR/individual accountability
Business practices
Management information
Conduct framework
Policies and procedures
Effectiveness
Ownership of risk
Control functions
Regulatory challenges
PwC
March 2016
Slide 2
Culture
Define
your cultural
aspirations in
line with your
strategy
“Thinking proactively about your
company’s culture as an integral
part of its business model is a good
start. The next step is to actually
start behaving in ways that make
it a reality.”
Harvard Business Review
Assess
your
current
culture
Identify your
behavioural
priorities
Intervene to
evolve and
align your
culture
Monitor
your
progress
#optimisingculture
Regulatory challenges
PwC
March 2016
Slide 3
Conduct risk
Identify
Monitor and report
Risk
appetite
Assess and measure
Control and mitigate
5 FCA Questions
How do you
identify conduct
risks in business?
Regulatory challenges
PwC
Who is
responsible for
managing
conduct?
What support is
there to enable
improvements?
How do the board
and ExCo gain
oversight?
Can
any incentives or
other activities
undermine this?
March 2016
Slide 4
Accountability is in the spotlight
Regulatory challenges
PwC
March 2016
Slide 5
Risk management
3rd LoD
Internal Audit
Board committees
How effective is:
• 1st line identification/ownership of risk
• 2nd line advice and challenge
2nd LoD
Compliance
Risk,
Legal, HR
• 3rd line independent testing
1st Line of Defence (‘LoD’)
Business teams, including management
and business controls
Regulatory challenges
PwC
March 2016
Slide 6
Questions
Regulatory challenges
PwC
March 2016
Slide 7
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