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Enterprise Risk

Industry Challenge:
 

Most financial institutions employ traditional “reactive” approaches to managing conduct risk through the use of technologies like User and Entity Behavioural Analysis systems, Trade Surveillance systems, and Security Information and Event Management systems. These “reactive systems” were not designed for prevention, rather they identify problematic behaviours only once they are occurring, and in doing so are not able to predict and prevent unwanted behaviour from happening in the first place. ​

For the most part, the inability to anticipate unwanted behaviour has resulted in organizations relying only on a reactive approach to managing conduct risk, where forensics plays a significant role and an overwhelming volume of false positives consume resources that could be better deployed and focused on prevention.

Why Receptiviti:

 

Receptiviti's API enables corporate risk functions and risk management technology providers to generate insights into the psychological attributes of a workforce and monitor factors such as their stress levels, risk taking propensities, and the social dynamics that exist among employees, teams and groups within the business, as well as understanding team cohesion, informal influence hierarchies, and attrition risk. In doing so, they can develop a real-time view of changes in workforce psychology and emerging outlier groups whose prevailing or trending psychological state puts them at risk of behaviour that is at odds with company norms.

Insights Into Insider Threat and Culture Risk:

Receptiviti provides research-based analytics that tie linguistic patterns and psychology to indicators of insider threat and culture risk such as:

RISK-TAKING PROPENSITY

Risk Tendency measures how risk-averse or reward-seeking people are. Highly risk-averse employees may be unlikely to take risks even when necessary, while those with a greater appetite for risk-taking are more likely to make unwise choices that could lead to reputational damage or financial loss.

DISGRUNTLEMENT

Disgruntled employees are less likely than others to give their best efforts, and may decrease the wellbeing and satisfaction of those around them, leading to a ripple effect of lower productivity and elevated risk of attrition, and  

may be more likely than others to violate company norms and policies.

STRESS

Sustained stress is often associated with difficulty focusing and loss of motivation. It can also lead to an array of other cognitive, mood, lifestyle, and workplace problems, including irritability, feeling overwhelmed, withdrawal, attrition and in certain circumstances may lead to conduct violations.

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© RECEPTIVITI INC. 2020