Risky Women & The Ethics of Compliance: What’s next?

Some follow-on things you can do today following the #RefinitivSummit in Singapore – dive right in:
#RefinitivSummit Risky Women Lunch Debate

  1. Join the Risky Women Network
  2. Follow @kimberleycole | @RiskyWomen
  3. Subscribe to Risky Women Radio on iTunes | Spotify | Google Play

About Risky Women®

A global network connecting, celebrating and championing women in risk, regulation and compliance. It has proven to be a great forum to engage and interact with peers, exchange ideas, opportunities and insights in the governance risk and compliance industry.

Learn more: solutions.refinitiv.com/RiskyWomen – and I hope to see you at a forthcoming networking event.

What we’re reading: factulness, bad blood, human risk …

Factfulness

I am currently reading Factfulness by the late Hans Rosling – and the very current Ola Rosling and Anna Rosling Rönnlund. It has some interesting insights topical for Ethical Business Practice.

They’re about blame and urgency (see chapters 9-10).  For example: “…blame drives us to attribute more power and influence to individuals than they deserve, for bad or for good.”

This is why we look at the whole system in Ethical Business Practice. We suggest root cause analysis is necessary to understand the role of not only various individuals – and also the system itself in creating the misconduct. If we just blame the individual, we may never learn the wider lessons.

Urgency is another issue, because it drives poor decision making (which relates to Daniel Kahneman’s work on Systems 1 & 2 – in Thinking, Fast and Slow.  If we make decisions purely with the intuitive, quick System 1 only we may not make the best decisions as we will not have used System 2 to do a proper analysis.  This could lead us to miss the ethical dimension of a situation. Other evidence comes from the famous 1973 Princeton Theological Seminar’s Good Samaritan Experiment. When we are in a hurry, we may  not always do the right thing because we are too focused and not considering all of the possibilities.

Bad Blood, Secrets and Lies

The other book I read in this period was Bad Blood, Secrets and Lies in a Silicon Valley Start Up about the incredible saga of Theranos. I will comment on this in an upcoming blog, because it is shocking how many people were taken in despite clear signs that something was amiss. There are many lessons about toxic organisational culture that could be learned as well.

Human Risk 

Finally, I would highly recommend that you subscribe to the new behavioural science Human Risk Newsletter from Christian Hunt.

In the first edition he mentions the fence paradox, coined by Dr Pasquale Cirillo. Dr. Cirillo uses a cartoon to illustrate his point that “many financial regulations give us a false sense of security”. As he points out, in order to avoid risk, we build fences but it is these very fences that attract more people to see then view because we feel safe. Paradoxically, more people may then be injured that would have been if the danger had been apparent. I think this partly explains why compliance programmes so often do not work.

Some food for thought? I hope so.

Got a reading or listening recommendation? Do share. 

An excerpt from AretéWork Quarterly – you can read the full issue here – and subscribe below:

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Culture, conduct & accountability – some follow-on reading & resources…

A quick five – follow #EthicalBusinessPractice for more every week…

  1. Chartered Banker: Are we getting to the root of what will drive change?
  2. Are we facing an ethics crisis?
  3. What is Ethical Business Practice and Regulation? A primer… (has a downloadable PDF you can print)
  4. Get your company values off the wall and into employee decisions
  5. Policy Brief: The International Adoption of Ethical Business Regulation

And RT / Like if you agree:

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#RefinitivSummit: Culture, conduct & individual accountability

Panel discussion

● A review of individual accountability frameworks in Asia: what worked, and what could be improved upon?
● Restoring trust in the financial sector: what can ASEAN learn from Australia’s Royal Commission and developments in Europe?
● How will a heightened enforcement climate change the way financial institutions approach culture and conduct?
● The role of the third line of defense: a case study in culture audit and transformation
● Use cases for leveraging behavioral psychology and economics to mitigate conduct risk

#RefinitivSummit ASEAN 2019Speakers

  • Ruth Steinholtz, Managing Partner, AretéWork LLP
  • Marcus Ng, Managing Director, Head of Internal Audit – Asia, Barclays
  • Natalie Curtis, Of Counsel, Herbert Smith Freehills
  • June Lau, APAC Head of Compliance, State Street

Moderator

  • Nathan Lynch, Asia-Pacific Bureau Chief, Financial Crime & Risk, Thomson Reuters

Follow along: #RefinitivSummit | #EthicalBusinessPractice

More #ethicsdates for your 2019 wall calendar and desk diary…

Some of the events coming up in 2019 – any missing? Let us know… add #EthicsDates to your tweet.

Refinitiv ASEAN Regulatory Summit
Singapore | 8 May | @refinitiv | #RefinitivSummitLearn more…

Refinitiv Australian Regulatory Summit
Sydney | 4 June | @refinitiv | Learn more…

Can we regulate for innovation and can we innovate in regulation?
Brussels | 13 June | European Justice Forum

#GlobalethicsDay2019
October 16, 2019 | @carnegiecouncilLearn more…

Conscious Capitalism – CEO Summit
Lost Pines, TX | October 15-17 | @ConsciousCap | Learn more…

Sustainability Reporting and Communications Summit
Amsterdam, Netherlands | 16-17 October, 2019 | Learn more…

 

Got an event recommendation? Do share. 

An excerpt from AretéWork Quarterly – you can read the full issue here – and subscribe below:

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AretéWork Quarterly – read the latest issue…

The fourth edition of the AretéWork Quarterly it out – it has fresh news and articles that relate to Ethical Business Practice and Ethical Business Regulation.

This issue looks back at the top articles from the first quarter – and looks ahead to some of the key events and conferences for the rest of 2019. You can read it on Mailchimp here.

Sign up to get the next issue in your inbox

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Keeping in touch

AretéWork LLP will use the information you provide on this form to provide interesting updates and content. Please let us know if you would like to hear from us via:

Email

You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at info@aretework.com. We will treat your information with respect. For more information about our privacy practices please visit our website. By clicking below, you agree that we may process your information in accordance with these terms.

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… and if you don’t want to wait a full three months between updates, be sure to follow along on TwitterLinkedIn and of course the AretéThoughts blog.

Acronyms, abbreviations – and mnemonics

Common abbreviations and acronyms used in #EthicalBusinessPractice and #EthicalBusinessRegulation
Click image to download a print-and-keep refererence PDF.

Plain language is always preferable. Yet, sometimes acronyms and abbreviations arise – both as shorthand and sometimes as helpful mnemonics.

Confused about those used in the context of #EthicalBusinessPractice and #EthicalBusinessRegulation?

Don’t suffer in silence.

Here’s a print-out-and-keep reference guid to common abbreviations and acronyms – adapted from Ethical Business Practice and Regulation – A Behavioural and Values-Based Approach to Compliance and Enforcement.

 

Listen with no thought of replying

Some thoughts from one of my recent workshops…

Try to be fully present without judgment. Listen with an open mind; focus on what the person is saying, not on how you are going to respond. Remember that everyone has his or her own separate reality. What might that mean for listening?

Try listening to a discussion about a controversial subject without closing your mind or thinking about your own point of view about this subject.

Consider the possibility that there may be another way of looking at this subject.

  • How does that affect your regard for the speaker?
  • Does it make you feel uncomfortable to acknowledge that there may be more than one “correct” view of the subject?
  • How often have you heard someone state something categorically that you know to be false?

What are your top tips for listening?

The Impact Revolution: The Role of Law and Lawyers

You are invited to join the ESELA Annual Conference on Friday 12 April 2019 at the London School of Economics, hosted by The Marshall Institute.

The conference will explore the Role of Law and Lawyers in the Impact Revolution. A varied agenda will cover international and domestic concerns across four streams: Impact Investing, Profit with Purpose, Systems Change and ‘Spotlight On

Get you conference ticket here.

…and we hope to see you specifically at this panel:

[Profit with Purpose] Values Driven Business

#EthicalBusinessPractice: Cultural and Leadership Framework – The Foundation, People and Ethos, Systems and Processes

The Foundation, People and Ethos, Systems and Processes:

The Foundation

  • A belief that ethics is everyone’s responsibility.
  • An articulated and inspirational social purpose.
  • Thoughtfully identified core ethical values, whose meanings are clear to all employees, and continuous communication and training for all (including the board) to reinforce the values.
  • A public commitment by leaders and managers to EBP, including some form of a public statement.
  • Conscious commitment to continuous improvement, curiosity about the organisational culture and demonstration of the basis for placing trust in the organisation, involving listening and feedback from a wide range of internal and external stakeholders.
  • Dedication to fairness in all aspects of the business and relationships.

People and Ethos

  • Leaders who are fully committed to ethical values and understand their role in creating an ethical culture, and who set a strong, positive example.
  • Employee involvement and engagement in fostering ethical business practice, such as using ethics ambassadors.
  • Management with the personalities and skills required to promote open communication, ethical decision-making, deep listening and to hold others to account.
  • Tolerance and encouragement of constructive conflict with no fear of reprisals for raising difficult issues.
  • A collaborative atmosphere—work across functions, business units and cultures with curiosity and respect, and the ability to learn lessons and continuously improve.

Aligned Systems and Processes

  • Processes and systems in alignment with ethical values and supporting ethical business practice, embedded in the business, not separate from it.
  • Performance management systems and incentive schemes that reward good leadership and ethical behaviours, not just results, and that do not foster unethical behaviour.
  • Provision of clear and adequate information and professional assistance to support all aspects of EBP.
  • Honest auditing, measurement and monitoring to enable the organisation to demonstrate the existence of a strong ethical culture and the basis for trust.


Read more in Ethical Business Practice and Regulation: A Behavioural and Values-Based Approach to Compliance and Enforcement, by Hodges and Steinholtz, Bloomsbury Professional Publishing.