Smart ways behavioural science can support compliance culture

While policy and procedure documents may abound, a nuanced people strategy that helps ensure desired behaviours are happening in practice is often lacking. Priya Giulianiand Katherine Odendaal share how insights from economics, psychology, sociology and neurology are able to assist an organisation's compliance goals.

Priya Giuliani(pgiuliani@guidehouse.com) is a partner with Guidehouse's Financial Crime, Fraud & Investigative Services:https://guidehouse.com/services/financial-crime-fraud-investigative-services. She has over 25 years of investigations and compliance experience, and leads the FFI team in European markets.Katherine Odendaal (kodendaal@guidehouse.com) has more than 15 years' experience in audit and senior investigations roles, and is a director with the team.

Each year, millions of pounds are spent on compliance and transforming risk management frameworks across all industries in the United Kingdom. However, despite this investment, increasing amounts are spent on enforcement and fines. Since 2013, the Financial Conduct Authority and the Prudential Regulation Authority have fined the financial sector over £4.9 billion - of which 73 per cent, approximately £3.6bn, relates to ineffective compliance programmes, including elements of conduct, market abuse and cyber security. [1]