Behavioural Risk Insight Reports • Are our people able to realise opportunities without undue risk? • How does our risk profile compare with the market? • Is there a shared commitment to standards and behaviours that reduce risk? • Where do I need to focus to ensure we are both compliant and enterprising?
Question: Which of our departments is best placed to minimise risk and maximise opportunity? Are we
more, or less, exposed than competitors? A large investment bank wanted to understand, in a climate of well publicised trading losses and increased government scrutiny, which of its three front office functions had the greatest potential to minimise risk while improving profitability. The bank also wanted to know how its people compared to other organisations in its sector.
Using SHL Talent Analytics, the bank compared assessment data from people across all three functions with SHL’s global Investment bank benchmarks for risk.
Investment Banking function Sales and Trading function
Investment banking globally Research function
Resilience to risk
Appetite for risk
Answer: Sales and Trading represents the greatest risk to your business. As with the Investment Banking function, they are more likely than the market to seize business opportunities (high Appetite for Risk), but less likely to manage risk effectively (low Resilience to Risk). You should urgently review your talent management processes to reduce your exposure in these functions, focusing on behaviours proven to reduce risk.