What are the types of conduct risk?

Regulators are interested in: the origins of conduct risk failures in sales and service frameworks conduct risk associated with conversations your frontline has with customers product disclosures and potential for conduct risk the way complaints are handled the process for remediation after conduct failings the ability to report on the entire conduct risk ecosystem.

What types of firms benefit from a conduct risk framework?

It is essential for firms in highly regulated industries (financial services industry, insurance, energy, aged care, superannuation and managed funds) and government departments to be able to identify, assess, monitor and manage conduct risk. YakTrak provides real-time visibility into the conduct of employees, how this compares to what should be done and the tools to close the gaps.

What is an example of conduct risk?

Conduct failures were a major factor contributing to the global financial crisis and many companies were subsequently fined Boston Consulting Group estimated that banks have paid over US$321 billion in fines).

What is the impact of government reviews and regulatory safeguards?

In Australia there has been increasing pressure for transparent governance. Commissioner Hayne in his Final Report relating to the financial services industry asks businesses to address a lack of capability in addressing non-financial risks. As a result, companies are bolstering systems, training staff, closing governance gaps and introducing measures to reduce conduct risk.

What is a conduct risk policy?

Key components include: Identifying the drivers for conduct risks Establishing the drivers for consumer protection Developing processes for remediating conduct risk breaches Monitoring progress and outputs Reporting processes for auditing Rewarding positive conduct.

How does YakTrak's solution leverage industry best practice?

YakTrak is a software as a service (SaaS) developed on a single line of code meaning quick and cost-effective customisation. We're committed to staying up to date with cross-industry best practice and YakTrak evolves as we grow our user base and gather client feedback so you benefit from everything that we’ve learned.

How can a firm use YakTrak’s ‘many-to-many’ workflow to manage corporate risk?

YakTrak’s risk management platform incorporates a ‘many-to-many’ workflow which means one form can be passed off to multiple areas within your organisation, or to a third party outside your organisation, for action. This provides broad oversight of key details across the business.

What are the three components of conduct risk management?

Risk management policies are based on: the type of information provided – so a particular behaviour, such as communicating information that is outside of regulatory boundaries the likelihood of the behaviour occurring – a high volume indicates a serious problem but even occasional instances may need to be addressed the impact of the behaviour occurring – such as reputational damage and financial penalties.

Manage conduct risk with coaching and accountability

Manage conduct risk with YakTrak

YakTrak supports conduct risk management, providing superior visibility over the conduct of your people with tools that help to mitigate risk and remediate breaches with coaching.

Overview and explainer

Watch to see how YakTrak can support your organisation’s conduct risk framework.

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Improve your conduct risk management

Manage conduct risk by gaining superior visibility and insights into what your teams are doing

Obtain critical insights over the conversations your frontline is having with customers
Identify the key areas that require immediate coaching and development
Give senior management the insights into breakdown reporting and trends over time
Support risk assessment with critical reporting functionality
Understand your organisation’s conduct risk volume details and risk categories
Accurately track behavioural outputs and conduct risk remediation activities

Screenshot of YakTrak software showing quality observation and compliance data

Reduce conduct risk

Close capability gaps and improve performance

Create workflows that mitigate conduct risk and remediate breaches with coaching
Establish a consistent rhythm for coaching to improve capability and outputs
Develop the conduct that you want to see
Track goals, measure behaviour and easily report to refine coaching to maximise outcomes
Support consumer interests with employee coaching and customer remediation workflows

YakTrak software screenshot showing employee interactions with customers for compliance

Set your business up with unique real-time reporting

Powerful software to improve conduct risk outcomes in your business

Customise dashboards to understand what your teams are doing
Easily access powerful audit trails and workflows that are important to your company
Gain access to real-time reporting for conduct risk assessment and regulatory compliance
Bring all development activity, forms and documentation into the one place for oversight over performance and conduct risk
Give senior managers the knowledge and tools to improve outcomes

Screenshot of YakTrak's software and dashboards showing line charts and observations

Engage your employees

Improve employee experience and your workplace culture

Reduce conduct risk by lifting engagement and creating a collaborative culture focused on improvement
Empower people to take control of their own learning and goals
Easily integrate YakTrak with your company
Reward good conduct
Reduce attrition by providing time for leaders to coach and develop their people

Infographic showing the improvements companies can see by improving employee experience including exceeding financial targets, delighting customers and improving employee retention.

Ready to give YakTrak a go?

Get in touch and we'll give you a tour around YakTrak

Join some of Australia’s best-known brands

Legal and regulatory requirements are changing constantly. Software that evolves and changes as quickly as your firm does is imperative. YakTrak workflows require minimum time and effort to set up and maintain and our rapid ideation process means you’ll get a solution quick smart.

YakTrak is the choice of large and medium companies with customer-facing employees providing:

innovative UI that supports daily usage
APIs to support integration needs
Single sign-on (SSO) that reduces log-in fatigue
safety and security using Australian-based data centres (or international locations as required)
data leakage prevention (DLP) to ensure sensitive information is adequately protected.

YakTrak’s conduct risk software leverages industry best practice. We’re committed to staying up to date and as YakTrak’s user base grows, we incorporate feedback so you benefit from everything that we’ve learned.

Want more information?

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FAQs

What are the key components of conduct risk frameworks?

Frameworks include:

identification of drivers
service delivery models based on organisational values and incorporating regulatory requirements
appropriate training and development opportunities
a conduct risk assessment process designed to reduce risk exposure
measurement and monitoring of conduct risks, including a risk register
processes to report risk and address conduct risk breaches
reporting on conduct risk and corrective actions and remediation measures.

How does YakTrak support your strategy?

YakTrak tracks the goals you want to see, creating a practical way to measure and monitor key conduct, remediate where necessary and reward good behaviour.

Dashboards provide real-time reporting
Audit workflows ensure records are kept for regulators and HR teams
Identification of key risks enable targeted coaching and development
Remediation is supported through YakTrak’s coaching software

How does YakTrak’s customised workflow work?

Let’s look at an example for a contact centre with 4,000 sales employees.

Management starts by defining the risks it seeks to avoid and the behaviours it wants to see and builds them into an observation workflow in YakTrak.
An observer listens to a staff member interaction with a customer and enters the details of outcomes into YakTrak. YakTrak springs to life behind the scenes and gets to work.
The observer enters details indicating a breach.
The form is then sent to multiple users within YakTrak for further action:
1. the employee’s leader – to advise of the event identified and coaching requirements. The team leader will then coach the employee and track the outcome in the YakTrak workflow.
2. the customer remediation team – who then contacts the customer with the correct information, and documents the outcome in YakTrak.
3. the governance team – who will then document the contact to the regulator if required.
The observation team keeps track of all interactions using its very own status dashboard providing an overview and real-time status update of all ‘open’ risks identified.

What is the impact of company culture when managing conduct risk?

It’s a challenge to get the balance right between having amazing customer-centric conversations and using preventative measures.

A risk management system or framework can be seen as a set of tick-the-box activities or even have a negative effect on a workforce that feels anxious about getting things right.

Implementation of conduct risk assessments can also lead to unintended consequences (e.g., robotic conversations that are highly scripted may lead to consumers feeling as though they are not being listened to).

This is where an engaged workforce and a culture of integrity can help ensure compliance. YakTrak helps organisations close performance gaps through regular employee coaching to support and engage employees and mitigate risk.