Safeguarding your reputation

Transcription

1 Safegarding yor reptation

2 At a glance Global Board Perspective A crisis of confidence* Three qarters of board members felt their companies were crisis ready. Bt less than half cold describe crisis preparation activity The two areas casing most concern were corporate reptation and cyber attacks. Others inclded spply chain, reglatory action and natral disasters Most board members felt most vlnerable to corporate reptation threat, bt fewer than 40% said they had a crisis plan to address one Under half of board members say they have engaged with management to nderstand crisis preparedness Nearly three qarters of board members that had experienced a crisis said recovery took between 1 and 5 years * Q Forbes Srvey, condcted on behalf of the Deloitte Centre for Crisis Management. More than 300 Board members representing every major indstry and geographic region were srveyed. Safegarding Reptation is still a growing challenge Reptation is the top strategic bsiness risk Reptation is a board and C-Site isse Reptation is driven by other bsiness risks Cstomers are key stakeholders for reptation risk Banks are least prepared for risk drivers beyond their direct control Loss of revene and brand vale are the key impacts Performance in a crisis directly impacts reptation and market vale Effective organisations: Recognise crisis management as a key reptational risk Are resilient, organised and practiced in crisis response Can react qickly, perform better and emerge stronger Banks are focsing more attention and resorces on reptation risk

3 Is yor bank ready to respond? The next crisis that cold threaten yor bank may already be taking shape, ptting yor reptation and bsiness at risk. We help yo ncover an nforeseen advantage by helping yo to prepare for, respond to, and emerge stronger from any crisis. Becase a crisis is npredictable de to the magnitde of chaos and distress that it can cost organisations exectives need a docmented crisis management plan in addition to their more conventional risk management strategies. When a real crisis emerges, a traditional bsiness continity plan may be insfficient, especially if it hasn t been tested. Many banks focs on reactive measres only. With a broad, lifecycle approach to readiness, response and recovery, yo can help retain control of the process even when yo don t have control of events. Yo can bild in the resiliency that has the potential to trn nforeseen events into nforeseen advantages. The Reglator (FINMA) follows closely the main banking risks. Nevertheless, Reptation which is one of the top strategic bsiness risks deserves a closer attention as described below: Credit Risk Banking risks covered by FINMA rles FINMA Circ. Credit risks banks, SBA self reglation for mortgage financing, SBA Gidelines for the management of contry risks, Margin drop, legal disptes, loss of clients Watch list, bsiness condct letter Market Risk (Rates, Forex, others) FINMA Circ. Markets risks banks, ICS Adeqacy Proper Bsiness Condct Operational Risk FINMA Circ. Operational risks, Liqidity Risk FINMA Circ. Liqidity risks banks, Reptation Impact Capital Adeqacy Legal and Compliance Risk FINMA Circ. Liqidity risks banks, FINMA Circ. Spervision and Internal Control banks, Adherence with license reqirements FINMA enforcement measres According to a recent crisis stdy, nearly 80% of bsiness leaders predict their organisations will experience a crisis within the next year. Despite this, only 54% of participating organisations had a crisis plan, and abot half of those plans were deemed insfficient.

4 Are yo eqipped to protect yor reptation? We developed an efficient rolling programme continally refreshing yor crisis readiness and response plan. Or concept identifies yor potential crisis triggers based on a robst assessment and simlation exercises covering all aspects of a crisis lifecycle. A Crisis management plan is designed in adherence with FINMA circlars and Swiss Banking Association (SBA) gidance. Key reptational factors Conseqences Disrpting reptational triggers How can a crisis affect yor reptation? Employee or cstomer behavior, bsiness model, stakeholders reglator or athority; all this elements can become a disrpting reptational trigger for yor organisation and damage yor reptation. Skills Stakeholder/ Athority/ Reglators distrst Talent drain Dependence Cstomer drain Cltre Inadeqate positioning Reptation impact Cstomers behavior Margin drop Vales Employee behavior Loss of Banking License Recover Post Event Review (PER) Claim handling, Litigation & Dispte spport (Enforcement procedres) Back to normal Respond Organisation Investigation Commnication Or concept to spport yo Integrated approach Readiness Assessment Simlation Crisis Management Plan design Reptation is yor main asset and a crisis can damage it

5 Crisis Readiness Or readiness work has enabled exectives to confidently maintain accontability to stakeholders in the event of a crisis. Illstrative framework progression Crisis Management Plan design Crisis Management Assessment Simlation Deloitte will analyse yor crrent stats Deloitte will help yo to identify yor crisis triggers Deloitte will assist yo to design and pdate yor Crisis Management Plan Crisis Response As yor network and operations become more globalised, it is vital that yor Response is holistic, scalable and agile to meet yor needs dring a crisis. A Response cold be triggered by either a local, regional, or global crisis event. It is essential that yo establish an integrated Response Framework to provide a strategic and coordinated response. Yo need rapid response teams operating nder the direction of experts with core competencies and reglatory knowledge and specific expertise. A comprehensive and straightforward programme can bring an organised approach to prepare for, and deal with a crisis. Delivery concept & how it works in practice Organisation Investigations Commnication Deloitte will: Set-p organisational chart, roles and clear responsibilities Define clear protocol of actions Deloitte will: Gather evidence throgh docment review, compter forensics, data analytics and market intelligence Report the findings and way forward Set p an investigation report and a remediation plan Deloitte will: Define yor strategy Establish a timetable Brainstorm scenarios and potential changes Provide a detailed commnication plan

6 Contacts Penelope Lepedry Frad Investigations & Litigation spport Penelope is Partner in or Forensic practice with over 20 years of international experience in Financial Advisory Services. Alexandre Bga Boards and Reglator coordinator Alexandre is Partner and Leader of or Financial Services Indstry practice in Romandie with over 20 years of experience in spporting Boards and reglators. Charles P. Salvadon Frad Investigations & Risk Management Charles is Director in or Forensic practice with over 20 years of international experience in Financial Advisory Services. Benjamin Castaing Adit and Risk Benjamin is Senior Manager in or Financial Services Indstry practice with over 8 years of experience in Adit & Risk Advisory. Mark Carter Swiss Risk Advisory Leader markjcarter@deloitte.ch Mark is Managing Partner of or Risk Advisory practice and a member of the Swiss Exective team. He has extensive IT consltancy experience, mainly helping organisations transform their information secrity capabilities. Antoine Spinelli Risk and Reglatory Compliance aspinelli@deloitte.ch Antoine is Senior Manager in or Financial Services Indstry practice with over 13 years in risk management and reglatory compliance in the banking indstry. Sara Ulrich Crisis management, simlation and war gaming slrich@deloitte.co.k Sara is Director and Simlations Lead with over 15 years of international experience in crisis management, simlations and War games. Rémy Wenger IT & Secrity rewenger@deloitte.ch Rémy is Director and leads or IT and Secrity Assrance team within or Financial Services Indstry practice. As a former Chief Information Secrity Officer in the banking indstry he has a significant experience in Cyber Secrity and Bsiness Continity. Deloitte refers to one or more of Deloitte Toche Tohmats Limited ( DTTL ), a UK private company limited by garantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal strctre of DTTL and its member firms. Deloitte SA is a sbsidiary of Deloitte LLP, the United Kingdom member firm of DTTL. Deloitte SA is an adit firm recognised and spervised by the Federal Adit Oversight Athority (FAOA) and the Swiss Financial Market Spervisory Athority (FINMA). This pblication has been written in general terms and therefore cannot be relied on to cover specific sitations; application of the principles set ot will depend pon the particlar circmstances involved and we recommend that yo obtain professional advice before acting or refraining from acting on any of the contents of this pblication. Deloitte SA wold be pleased to advise readers on how to apply the principles set ot in this pblication to their specific circmstances. Deloitte SA accepts no dty of care or liability for any loss occasioned to any person acting or refraining from action as a reslt of any material in this pblication Deloitte SA. All rights reserved. Designed and prodced by The Creative Stdio at Deloitte, Zrich. J10609