using e-learning to manage compliance and operational risk

Solutions for Finance Professionalswww.inmarkets.com

Using e-learning to manage compliance and operational risks


Anthony MillerManaging Director, Inmarkets Ltd


About Inmarkets

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Today’s Presentation

The need for effective policy communication E-learning as an effective and cost-efficient

communication channel Delivering an e-learning program Case study Using e-learning in small-to-medium sized

organisations Current hot topics for e-learning in financial services


Operational Risk Compliance Risk

Legal RiskReputation Risk

Failure to manage these risks can lead to:

• Reputational damage• Regulatory action• Financial losses


Managing Operational and Compliance Risks Identify the risks faced by the organisation Design systems, policies and controls to

mitigate these risks Communicate these policies to staff Monitor compliance with the policies Review and update policies to reflect changes

in regulations, the nature of the organisation’s business activities and the wider economic environment


Policy Communication Policies are only effective if employees are aware of

them and understand how to apply them to their work

Do you have visibility and control over the policy communication process?

Policy(intended behaviour)

Actual Employee Behaviour

?


Why use e-learning?

Email with policy document attached

Fast Low-cost Consistent Low impact Low

measurability

Classroom training sessions

Slow High-cost Inconsistent High impact Some

measurability

E-learning

High measurability


Delivering an e-learning program

Define learning objectives Develop content Deploy content on an LMS and define the audience Track learner progress Produce management reports

Production Review UpdatesStatementOf Work

RequirementDefinition

Go Live:Communication PlanMI RequirementsMaintenance Plan


Instructional design: Engage-Inform-Influence

What is the learning About? Why is it important to the organisation and the individual learner.

Interactive scenarios and case studies

Concise, jargon free description of the subject. Illustrated explanation of subject.


Assessment

Structured randomisation All responses tracked Diagnostic reporting

MI provided at the question level for each user, groups of users and the entire population

Can identify areas for remedial action – additional training


Solution:• E-Learning content was designed to

engage employees, inform them about the policies and influence their behaviour

• The use of interactive scenarios ensures that completion means a sufficient level of understanding has been achieved and the knowledge can be applied in real-life situations

Case Study: Policy Communication

Challenge:• Requirement to ensure all staff have

awareness and understanding of key compliance issues, and transfer more extensive knowledge to employees in certain job roles

• Manage the operational, reputation and legal risks associated with a failure to comply with regulations


Case Study: Policy CommunicationImplementation:• Content is delivered and tracked using Inmarkets eLDP• Training records are automatically transferred to the client HR system• Compliance managers access high-level reports• Line managers access self-service reporting, so responsibility for compliance can be cascaded

throughout the business• Integration with other IT systems prevents “delinquents” from continuing their day-to-day work if

they have not completed their mandatory learning requirements within the timescales specified by the compliance department


Results:• All new joiners complete mandatory training within 30 days of joining the bank• When new policies are rolled out, 95% plus completion rates are achieved within 30 days• The system is now leveraged by other groups such as financial control, operational risk

management, IT and HR to communicate policies across the firm, ranging from diversity and equality in the work place to IT security.


How can e-learning be used in smaller organisations?

Reduce development costs by leveraging existing off-the-shelf content

Reduce technology costs by using a web-based SaaS solution

Inmarkets offer a suite of over 30 compliance modules for UK financial services organisations

Each module can be licensed, delivered and tracked at a cost of £20 per employee (or less).


Current hot topics

Treating customers fairly Fighting financial crime – AML and fraud prevention Information security Data protection MiFID Basel II FSA COB, MCOB, ICOB

using e-learning to manage compliance and operational risk

Technology

elearning content

use elearning

compliance risks

policy communication

learning objectives

measurability e

elearning program case

operational risks