Challenging and Removing the Bias in your Firm
In yesterdays’ 50 Shades of Bias webinar, I discussed with Behavioural expert Dr Roger Miles how the behaviour bias of individuals, teams, boards within regulated firms can lead to poor decision making and costly mistakes. 89% of our webinar attendees were candid in their responses saying that they had a ‘poor or average’ understanding of behavioural science while 63% of the audience didn’t understand ‘The FCA increasing focus on behavioural science and bias’ when it comes to reviewing your firms’ culture.
For me, these stats are worrying.
In less than 50 working days the Senior Managers and Certification Regime (SM&CR), already rolled out to banks and insurance firms, will apply to all 47,000 firms the FCA regulates. Under the regime, The Financial CONDUCT Authority makes senior managers accountable for the CONDUCT (yes, that word again) of themselves and their employees. For me, as a former leader of a regulated firm, this starts with recognising and ‘OUTING’ common behavioural biases to prevent misconduct breaches from happening in the first place. Firms that use our AI tool Clever Nelly introduce forced objectivity and data to counteract their own group-level behavioural biases that can often lead them to believe that their compliance and people risks are more accurate and precise than they really are. Armed with this data and MI these firms have a clear line of sight on a daily basis about the training and competency of their people which enables them to challenge and address behavioural Bias.
In this new era of accountability, where firms are struggling to keep pace with the regulators’ expectations of Bias, behaviour and conduct, AI tools like Nelly are available to remove the blind spots and help address their most challenging organisational behavioural biases.
CEO of Elephants don’t Forget