This whitepaper highlights how research findings have identified forms and patterns of rule-breaking behavior in the financial markets. The paper also considers the darker side of recent findings, some of the games of compliance noted by researchers, and looks at a few common behavioral effects which disrupt organizations.
The more we understand what bad behavior looks like and the factors that nurture it, the more steps we can take to eradicate it. This same research points to new places where regulators - and indeed the many newly-appointed Conduct Risk Managers - might look for clues to help them frame new behavioral controls.
Read this whitepaper to explore:
• Different paradigms that exist for habitual rule breaking within organizations
• Biases in individuals and risk cultures that inhibit or prevent the identification of potential issues
• Preconditions for rule bending and breaking in organizational risk cultures
• Categories of rule-gaming that can lead to conduct risk events
• How organizations can begin to consider re-framing issues in their own risk cultures