How do you make risk management more forward-looking?

By providing insights into high-risk behaviour patterns and root causes and addressing them proactively

An international bank was confronted with behavioural issues. The likelihood of recurrence was high. In addition, the bank was under great pressure to reduce costs and increase growth. Through a Behavioural Risk Review (BRR), &samhoud identified the aspects that cause a high risk of future issues. By applying the behavioural lens, the root causes of high-risk behaviour within the bank became clear, which provided a strong starting point for interventions to mitigate these risks.

 

 

Results

  • The BRR provided a scientifically based overview of high-risk behaviour patterns and root causes of this behaviour, such as ineffective error-management, ineffective group dynamics and conflicting goals.
  • Within the bank, awareness about the relevance of behaviour and culture in the occurrence of risks increased.
  • The insights gained from the BRR enabled the bank to target the identified root causes of the high-risk behaviour patterns and thus effectively mitigate the risk of recurrence.

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“ The outcomes stemming from high behavioral risk reduce cultural capital, damage the firm and the trustworthiness of the industry over time ”

 Kevin Stiroh, Executive Vice President of the New York Federal Reserve Bank and head of the Supervision Group, Nov 2020

Our approach

During the BRR, information was gathered through confidential interviews, workfloor observations, an online survey and extensive research of organisational documents and data. The BRR report provided an overview of high-risk behaviours and their root causes, illustrated with data (such as quotes) and supported by insights from behavioural science. These insights helped senior management to improve the bank’s risk management from a behavioural science perspective and to design targeted interventions that substantially reduce risk.

The BRR consisted of 3 phases:

  • In the Planning Phase, the methodology was introduced to the key stakeholders and preparations for the research were made.
  • In the Research Phase, quantitative and qualitative data were collected.
  • In the Reporting Phase, the collected data was analysed and insights from behavioural sciences were applied to relate the results to risks.

Together we build a brighter future

Unique approach in transformation

  • &samhoud offers a unique combination of vast experience in risk management and supervision, combined with a broad background in behavioural science and behavioural change.
  • The employees in &samhoud’s team serve as independent researchers who collect qualitative and quantitative data using a semi-structured process.

What challenge is your organisation facing today? Contact us and we will discuss the options together.

Wieke Scholten
LinkedIn +31 06 15190078