People, process and technology are some of the key components in the financial crime process control environment. Processes and technology do as they are programmed to do; people however are less predictable in following instructions. In the financial services industry, process control implementations typically address processes and technology, while the Change Management component and its focus on the human aspect of process change is receiving increased attention. But is change management enough?
Simplifying financial services controls into people, process, and technology, the process and technology components provide the direction and stability, however they rely on the people component to drive them forward. People can be infinitely variable, which theoretically goes against the objectives of process control. But is this truly the case?
Expanding on that, people introduce innovative thinking and can improve the reliability and adaptability of processes. In managing financial crime risk, thinking like a criminal could be to your advantage. However do your processes allow for this kind of thinking? Regular training is crucial in the financial crime process environment. It equips employees with the necessary knowledge and skills to carry out their tasks, reduces risk and errors, that can have severe financial and other consequences. In an environment where criminal activity is evolving at an accelerated pace, training is critical. Does your training programme help evolve your employee's to out-think criminals?
A search for key drivers behind the evolution of process controls will reveal many perspectives e.g. Kaizen and Six-Sigma. In the financial crime controls setting, focus areas are likely to be on improving process performance leading to reduced risk, increased productivity and reduced variability in meeting regulatory requirements.
The sometimes-conflicting objectives of meeting regulatory requirements, increasing innovation and reducing variability in processes requires consideration. In today's world, innovation and variability are quickly becoming part of employee requirements in the workplace. Variability on the other hand can also be considered an employee weakness. Once again, training is essential to develop employees who can balance innovation with an understanding of the purpose and limitations of processes, to produce the best possible outcomes for the organisation.
Training is crucial in the financial crime control environment, enhancing focus on compliance, reducing risk, improving efficiency, leading to increased productivity and an enhanced customer experience. Training programmes should not be seen as a "drag and drop" exercises but should be well-considered in terms of content and the potential burden on employees. It should address potential psychological stresses that employees may experience during training. These could include performance pressure, fear of change, learning discomfort, time constraints, and impostor syndrome.
A well-designed financial crime risk management training programme should extend your Change Management programme into the daily lives of employees, through supporting an enhanced knowledge of what the processes and technologies are striving for and empowering employees to bring their innovation and variability to the fore. This will help the organisation meet its risk and regulatory objectives more efficiently, whilst improving the customer and employee experience.
Want to know more? Contact our learning and development experts at learning@fcrmc.co.za.