conduct risk - Cognitive View

It is no secret that the Australian banking and insurance sector is taking a beating for gross misconduct and malpractices recorded and reported by customers across financial platforms, amounting to significant losses on the consumer’s side. In the wake of the investigation by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services followed by the publication of the Final Report, it has become clear that the act of indiscriminately incentivizing insurance sales, notorious known as ‘commission selling’ has resulted in instances of flouting conduct regulations. Inquiries have revealed that agents have been openly taking advantage of a loose compliance regulatory infrastructure by way of making unsolicited, and potentially fraudulent sales call to potential consumers where individual remuneration-led interests gained the unfair edge over customer needs.

Keeping the gravity of the situation in perspective, the Royal Commission has, in its Final Report come up with a total of 15 recommendations specific to the insurance industry and 76 recommendations in total across the banking, superannuation and financial services. Broadly speaking, these recommendations look to a complete upheaval of the Australian Financial Compliance and Regulatory Codes, often bordering on extreme suggestions of banning commission selling, enforcing legal changes to making financial institutions completely accountable for their Point of Sales practices.

In sum, however, it can be accepted, that compliance is here to stay and your firm has to catch up in the here and now. Conduct Risk Analysis and making your firm aligned to dynamic compliance specifications of the country can be challenging. Even more so when the face of most financial firms is a call center potentially generating an infinite cloud of data in way of voice calls to and fro between agent and customer. Unmonitored, these calls have the risk of flouting industry regulatory standards, leading to flawed customer experience, hurting goodwill and repeat purchase decision, other than of course attracting the ire of the Regulatory Authorities. The future of Conduct Risk Analysis and Conduct Management for your firm is to install an automated and integrated Compliance Regulator Platform.

Below are 5 reasons why you should consider automating conduct related risks:

1.Conflict of Interest:  Aligned to modern regulatory specifications, this platform will help you identify and prevent conflict of interest at any/various control points

2.Process Adherence: Prebuilt libraries with compliance processes and procedures mean that your compliance regulation is completely monitored

3.Deceptive Conduct Analysis: Ensures individuals and leadership are responsible and accountable for deceptive conduct

4.Service Obligation: Converts the traditional QA interactions into an insight mining process which provides agent, business, operational and customer level insights to build on for future compliance risk mitigation

5.Legal Obligation: Aligned with regulatory directives in combating conduct risk and thereby safeguarding customer interests, as part of customer-centric policies devised for regulatory health of the firm and the overall financial sector

Good news is that most of these automated regulatory platforms are optimized for call centers, chatbots, digital & paper-based forms as well as Emails – which means, all consumer touchpoints are taken care of and you can now safely put regulatory and compliance risks at bay! Welcome to a world of hassle-free compliance risk management.

 

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