In July 2104, the recently divorced Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) came together once more to produce a Joint Consultation Paper entitled ‘Strengthening accountability in banking: a new regulatory framework for individuals’ [1]. Following the scandals of the GFC, LIBOR and PPI, the regulators believe that holding “individuals to account is a key component of effective regulation”. The regulators pointed out that their extensive proposals were intended to “create a new framework to encourage individuals to take greater responsibility for their actions, and will make it easier for both firms and regulators to hold individuals to account”.
The key words throughout the consultation paper are ‘individual’, ‘responsibility’ and ‘accountability’.
Category: Pat McConnell
Board-Level People Risk – the HBOS Rights Issue
The 2008 HBOS Rights Issue
In April 2008, HBOS was on life support when, in a last throw of the dice, the Board decided to launch a rights issue to raise some £4 billion in capital. This was a spectacularly ‘bad’ decision, not because the issue was a complete flop with just over an 8% take-up, but because the prospectus that the Board approved was to put it mildly a ‘work of [half] fiction’, particularly as regards the level of provisions for credit defaults.
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People Risk – Research
The Centre for Risk, Banking and Financial Services at the Nottingham University Business School has obtained funding from the Economic and Social Research Council (ESRC) to run a series of seminars on People Risk.
The next seminar in the series is on 8th October 2014 at Glasgow Caledonian University , on the topic of “the challenges for research and practice in ‘people risk’ management within the domains of aviation and the health sector”.
People Risk – Groupthink
What is Groupthink?
Groupthink is one of the most widely-used but least-understood terms in Business [1]. We all know that Groupthink refers to the tendency of a group to coalesce around a common position, for example a Board of directors on a corporate strategy or senior management on a cost-cutting program. It is what groups do after all, otherwise they will break up in conflict.
Welcome to People Risk Management
This blog is dedicated to the study of People Risk Management (PRM), a topic that cuts across multiple disciplines: Risk Management, Human Resources, Corporate Governance, Behavioral Psychology, White Collar Criminality and Health & Safety.
People Risk Management 