Chapter 2 Supervision Principles Flashcards
What is senior managent responsibilities and certification?
March 2016
Banks building societies
Dual firms
Smr will replace SiF . Everyone needs to certificate in their role.
What are the four main areas to consider when managing risk?
Operational risk managent People risk Process risk Data Performance management policy
Approved persons
Statement of principle and code of practice
What are the 7 requirements?
Integrity
Skill. Care and diligence
Proper standards of market conduct
Open and co- operative with the regulator
In addition for a SiF
Organisation and control
Skill, care and diligence in managing
Compliance
Fca systems and controls
Sysc 3 systems and controls
Sysc 4 General organisational requirements
Sysc 5 competent employee rules
Sysc 7 - risk controls
T&c
MR CASTN
M is maintaining competence
R is for records
C is competence and how it is assessed A is appropriate qualifications S is supervising T is training N is notification requirements
What are the 3 key elements of strategic planning
Analysis-where we are now SWOT scenario planning done here for the what if
Choices - now you have to make a decision, is it legal/ ethical what do shareholders need. Is it stretch or fit?
Implementation - how do you manage change how can it be organised
Under strategic analysis you would use the planning tools
Name all 5 and what they do?
Ansoff matrix -grow
Boston consulting group - using money in the right place
Swot - internal and external
Pest - broader external views
Customer matrix - putting the customer first
What is Ansoff matrix
To establish where to grow
Looks at business planning for product development
Profit potential - products and services
Does internal external anaylsis of business
What is Boston matrix
About using capital and resources effectively
Use to analyse product/services
Determine best use of resources
Achieve growth by exploiting opportunities
Both internal and external of business
What is swot
Balanced view of strengths and weaknesses
Helps to leverage strengths
Opportunity to turn threats into opportunity
Broad analysis-not just products
Both internal and external analysis of business
What is pest
Encourages a broad view of issues
Planning/strategy need to take into account external influences
Firms often get bogged down looking at themselves-this is a purely external view of the factors that may impact on business planning
What is a customer matrix
Focuses on what the coroner wants/needs/values most
Visual format/simple to understand
Provides a comparison with competitors
Identifies strengths to leverage;weakness to address
Both internal and external analysis of business
Name the four change models
Lean
Lewis
Seven s framework (7s framework)
Kotter’s eight steps
Four elements of the risk management cycle
Risk identification
Risk measurement
Risk mitigation
Risk monitoring and reporting
Name the seven S framework by McKinsey?
Srategy
Structure
Systems —— all hard
Skills
Staff
Style———- all soft
Subordinate goal ie vision
All interact so if the change all these will change
Kotters 8 steps to change
Establish sense of urgency Form coalition Create a vision Communicate vision Empower others to act Plan short term wins Consolidate improvements Institutionalise the improvements
Kurt Lewin change model
Unfreeze - achieve recognition that change is needed
Changing - implementation process
Re freezing - stabilising the change and incorporating the change
What are fca three pillars of supervision
Firm systematic framework
Event driven work
Issues and products
What can you use to identify risks?
Complaints kpi business plan competitors
What is risk measurement?
Quantify the severity Monitor impact v probility Avoid it Insure against it Transfer risk Manage it
Main types of people risk
Cripm
Competence risk Reward risk Integrity risk Purpose risk Motivational risk
How do you manage people risk
SEA
Supportive approach
Educational approach
Administrative approach
What are the steps in performance management
5 steps
Define strategy Determine outcomes Mi kpi Performance measures Reward
Wh3 performance management methods
Policy - goals . Appraisals
Balanced scorecard FLIc - probably the best one ( kaolin and norton)
Dashboard/ heat map - all in one place
Explain element of standard balanced scorecard
FLIc
Financial - business results
Learning and growth - CPD
Internal process -kpi
Customer - satisfaction surveys complaint levels
Give egs of hard and soft measured
Hard - fee income no of complaints persistency
Soft client feedback behaviours
