We were delighted to host the first of our R&G Insights Lab webinar series, on Data Driven and Human Centered Risk Management. The presentation was led by Zach Coseglia, Head of Innovation and co-lead of the R&G Insights Lab, with contributions from partners Amanda Raad, Alex Rene and Rosemarie Paul.
The discussion focused on the practical implementation of analytics and how this can be utilized in compliance and risk management. Zach drew on examples from his former role as Head of Global Compliance Monitoring, Analytics and Digital at Pfizer, and emphasized the benefits of using data to assess the effectiveness of compliance programs. Zach also underscored the importance of approaching compliance and risk management as an inherently human exercise – not an exclusively legal or regulatory one.
The presentation centered around a case study, designed to help compliance and risk teams develop a framework for answering a simple, but important question: “does my compliance program actually work?” This framework requires compliance teams to look not only at what they are “doing” but also ask “is it working?”
The “Do” analysis involves:
- considering the compliance program that is in place (training, policies, risk assessments, etc.)
- assessing if there are any gaps that need to be addressed
The “Is it working?” analysis involves:
- looking at employee awareness of relevant risks, as well as the policies, procedures, governance and control frameworks put in place to mitigate them
- assessing if employees understand what is expected of them and how to execute in a compliant way
- analyzing employee behavior to confirm that employees are meeting compliance requirements
Zach led the audience through the development of a mathematical framework to reflect the “do” score and the “is it working” score and how these might be visualized to tell a holistic story about compliance performance and effectiveness. Attendees were very engaged with some interesting and thoughtful questions asked.
We are looking forward to presenting the next webinar in this three-part R&G Insights Lab series, which will focus on culture, diversity, equity and inclusion. Please email our events team at RGEvents@ropesgray.com to pre-register. We will follow up with details soon.
To examine the benefits of a behavioral science approach, R&G Insights Lab hosted an interactive discussion about how to infuse analytics into a company’s compliance program—and what it means to take a human-centered approach to risk management.