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Eugene Burke Keynote London

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  • 1. March 2013From the data to action and back againCombining analytics and behaviour change in the banking industryEugene Burke, Chief Science & Analytics Officer © SHL 2013 1 March 25, 2013
  • 2. The context is banking © SHL 2013 2 March 25, 2013
  • 3. The topic is risk © SHL 2013 3 March 25, 2013
  • 4. How well are organisations prepared for risk? “Of all the management tasks that were bungled in the period leading up to the global recession, none was bungled more egregiously than the management of risk.” Spotlight on risk Harvard Business Review October, 2009 Source: Lloyds Risk Index 2011 © SHL 2013 4 March 25, 2013
  • 5. You can respond to risk structurallyYou can tighten up your processes Ultimately it is going to come down to what people do © SHL 2013 5 March 25, 2013
  • 6. On their own time, people do some strange things © SHL 2013 6 March 25, 2013
  • 7. © SHL 20137 March 25, 2013
  • 8. “There is the risk you cannot afford totake, there is the risk you cannot affordnot to take.” Drucker © SHL 2013 8 March 25, 2013
  • 9. There’s a risk in doing nothing ...“I am so busy doing nothing... that the idea of doing anything - which as you know, alwaysleads to something - cuts into the nothing and then forces me to have to drop everything.” Jerry Seinfeld © SHL 2013 9 March 25, 2013
  • 10. We need a balanced view of risk Appetite for Risk Resilience to Risk © SHL 2013 10 March 25, 2013
  • 11. We need a balanced view of risk Appetite for Risk Resilience to Risk © SHL 2013 11 March 25, 2013
  • 12. That model and bank share performance Bench strength for risk stronger in sector Bench strength for risk average in sector Bench strength for risk weaker in sector © SHL 2013 12 March 25, 2013
  • 13. Those banks, their people and risk 250 200 150 SHL Global 100 50 0 Appetite For Risk Resilience to Risk Sector Bank A Bank B Bank C 1.3 million assessments across 79 countries © SHL 2013 13 March 25, 2013
  • 14. Those 3 banks and their share price over 5 years 120 110 100 90 91 80 70 74 60 50 40 30 20 10 9 0 2008 2009 2010 2011 Sep 2012 Bank A Bank B Bank C © SHL 2013 14 March 25, 2013
  • 15. What people do appears to have an impact © SHL 2013 15 March 25, 2013
  • 16. So, let’s get to individuals and their behaviour © SHL 2013 16 March 25, 2013
  • 17. LikelihoodsConsequences Biases © SHL 2013 17 March 25, 2013
  • 18. Reputation Decision Profit Quality RegulationConsciousness of biases Stakeholders © SHL 2013 18 March 25, 2013
  • 19. How do the talents of our people position us for risk? © SHL 2013 19 March 25, 2013
  • 20. Talent management ought to have a role inrisk management Are we clear on the behaviours that enable us to be effective in engaging with risk? Are those clearly captured by our competency models? Are they clear to our people? What is the profile that our EVP attracts to our organisation? What talents are we recruiting into our organisation? What talents are we electing through our succession processes? How are these behaviours underpinning our L&D programmes? © SHL 2013 20 March 25, 2013
  • 21. Whatever the context, the impact of behaviours has awide reach Operational – increased errors, accidents & delaysMisalignment of goals Legal – lower compliance with Lack of ownership over decisions regulations & procedures Confusion over who owns decisions Commercial – poorly designed & executed goods and services Direction to follow unclear Reputational – reduced confidence Lack of accountability in products and services Denial of responsibility Customer – increased disaffection & dissatisfactionLoss of pride in employer Employer brand – lower Employee disaffection credibility & attractiveness Absenteeism Talent – dilution of bench strength Employee churn © SHL 2013 21 March 25, 2013
  • 22. Thank youeugene.burke@shl.com © SHL 2013 22 March 25, 2013