Collaborating Across The 3 Lines - Adopting A Behavioural Risk Approach
The webinar, "Collaborating Across The 3 Lines - Adopting A Behavioural Risk Approach" held on 14 December 2023, drew participation from over 260 attendees representing Singapore and IIA Affiliates from Asia and the US. Morgan Fenelon, Head of Second Line Assurance, Asia, Conduct, Financial Crime & Compliance at Standard Chartered Bank, delivered an insightful presentation, sharing key findings from his research paper.
The research highlighted numerous inhibiting factors embedded within organisational cultures or team subcultures, often not immediately apparent. These factors underscored the importance of a collaborative approach in driving meaningful change. The findings also emphasised that a more 'human' approach to internal audit alone is insufficient for catalysing change. Instead, Morgan stressed the importance of considering all parties involved in multi-party dynamics as crucial variables in the equation. A notable revelation was the existence of a trust deficit, particularly with internal audit, highlighting the crucial role of trust-building in professional relationships. The reluctance of auditees to acknowledge audit issues due to cultural pressures within organisations was also discussed.
To address these challenges, there was a mention of leveraging advanced tools such as neuroscience and artificial intelligence to better understand underlying dynamics and behaviours across organisations. In the current landscape, addressing cultural themes and conflict resolution is paramount to fostering collaborative and positive work environments.
The insights shared during the webinar conveyed that both conflictual relationships and a dark culture emerge as significant factors influencing different reactions and behaviours towards internal audit. By acknowledging and working to mitigate these challenges, organisations can pave the way for more constructive and collaborative engagements with internal audit, fostering a positive and resilient work environment.
