Social Risks for financial institutions–The Dialogue Podcast

The next instalment of the Dialogue Podcast series explores why conventional risk management may be failing Australia's financial institutions, which have been subjected to scorching community and government criticism, tougher regulations, and now a Royal Commission.

In the podcast, Rick Shaw (Partner at Deloitte) questions Ian Laughlin (Chairman at OnePath Life and ANZ Lenders Mortgage Insurance) on the ideas in his Dialogue thought leadership paper 'Social Risks - for a financial services business'. 

In his paper, Ian says institutions do not seem to be effectively managing the risks that come from swiftly changing social norms and attitudes in the contemporary world.

Acknowledging the changed 'risk profile', Rick asks:

Rick and Ian discuss how institutions have failed in identifying new risks, such as social media, the spread of fake news and 'reverse fake news'.

Ian highlights the importance of forward looking 'risk sensing' to manage social risk, rather than simply following "conventional risk management [where] the risks are monitored in arrears".

To help provide insight into social risks Ian produced 14 labels for types of social risk that include:

• cynicism risk
• true values risk
• insight risk
• tolerance risk
• self awareness risk

Iandebates in the podcast, various reasons why institutions could have failed in their current framework by not acknowledging all associated risks:

Despite the current challenges, Ian is optimistic that with the correct resources and risk management framework, companies and institutions can repair their reputation.

Listen in to find out more on Ian's research and recommendations on how financial institutions can manage existing social risks and prepare themselves for the uncertainties of future risk management.

Download Transcript here.

Access the Paper and Media Release here .

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