What is non-financial risk?

You might have heard a lot of financial regulator talk about non-financial risk lately. Not sure what that means?

Thanks to APRA definitions also adopted by ASIC, please find below what types of risks fall under this category:

  • Operational risk – relates to the robustness of your internal processes, people and systems
  • Compliance risk – relates to your organisation’s compliance with laws, regulations, rules, related self-regulatory standards, and codes of conduct applicable to its activities
  • Conduct risk – relates to how appropriate, ethical or lawful the behaviour of your organisation’s management and employees is.

Why care about these risks? Because according to ASIC’s Corporate Governance Taskforce: “The reality is that non-financial risks have very real financial implications for companies, their investors and their customers.”

Our non-financial risk learning

Check out some highlights from our current programs and CPD topics to help get your organisation’s non-financial risk training sorted, and you’re welcome to get in touch if we can assist.

Operational risk

Cyber security refresher

Stay ahead of your cyber risks! Our Cyber security refresher reviews cyber security threats to financial services, and outlines what industry participants should be reviewing when formulating their cyber strategy.

In this course you will learn to:

  • Define what a cyber risk is and outline primary cyber risks and vulnerabilities related to financial services
  • Discuss domestic and international thought leadership and regulatory guidance regarding cyber resilience
  • Analyse cyber concerns for financial markets participants and investors
  • Identify key areas for building cyber resilience
  • Evaluate infrastructure, human resources management and operational strategies for mitigating cyber risks
  • Describe legal and compliance requirements directly related to or that overlap with cyber security.

3 CPD points

Privacy and data protection

Incorporating some high profile cases, our Privacy and data protection topic outlines the key issues you need to consider to ensure your organisation’s privacy and data protection activity is compliant and modelling best practice.

In this course you will learn to:

  • Outline the background to Australia’s privacy and data protection regime
  • Identify if and when privacy and data protection laws apply to your organisation
  • Define “personal information” and explain how information “about” an individual is differentiated from information “not about” an individual
  • Discuss the privacy and data protection laws in place in Australia and how they are enforced
  • Describe why data breaches occur and how they must be reported; and recommend ways they can be risk managed
  • Determine how your organisation should go about developing and maintaining a sound privacy and data protection framework; and assess the risks of not having such a framework.

3 CPD pointsSave

Conflicts of Interest

Conflicts of interestASIC has defined conflicts of interest as circumstances where some or all of the interests of clients to whom a licensee provides financial services are inconsistent with, or diverge from, some or all of the interests of the licensee.

In this course you will learn to:

  • Describe what a conflict of interest is
  • Discuss why it is important to manage conflicts of interest
  • Illustrate examples of conflict of interest
  • Outline generic ways to mitigate conflict of interest
  • Identify how ASIC recommends that licensees manage conflicts of interest
  • Explain how conflicts of interest can be controlled
  • Evaluate how disclosure can be used to manage conflicts of interest.

3 CPD points

Compliance risk

The AML/CTF program

Anti-money laundering courseGet clear and meaningful, up-to-date coverage of applicable regulation and rules from our comprehensive AML/CTF program, which includes compliance planning, customer due diligence, reporting, and record-keeping requirements.

Our AML/CTF program provides clear and meaningful, up-to-date coverage of applicable regulation and rules, including:

  • putting together your AML/CTF program
  • complying with customer due diligence requirements
  • meeting reporting obligations.

Find out more

Marketing and advertising financial products (RG 234)

Rg234 Marketing Financial ProductsWith regulators intensifying enforcement of disclosure, get the lowdown on best practice promoting of financial products and services with our specialist topic, Marketing and advertising financial products (RG 234).

Suitable for all teams involved in creating and approving disclosure documents, marketing materials, and advertising, including those in the credit sector.

In this course you will learn to:

  • Identify the factors that contributed to ASIC consulting on and issuing RG 234
  • Differentiate marketing and advertising from other forms of disclosure
  • Outline what marketing and advertising activities RG 234 covers
  • Explain the key provisions/requirements in RG 234
  • Discuss how ASIC supervises compliance with RG 234 and what enforcement powers it has
  • Describe how compliant marketing and advertising fits into a licensee’s obligations

3 CPD points

Design and Distribution Obligations and Product Intervention powers

Design and distribution obligations bring accountability for issuers and distributors to design, market and distribute financial and credit products that meet consumer needs. Product intervention powers allows ASIC to temporarily intervene in a range of ways, including to ban financial products and credit products, when there is a risk of significant consumer detriment.

In this course you will learn to:

  • Discuss the emerging global and domestic themes that drove the creation and implementation of design and distribution obligations and product intervention powers
  • Outline the key milestones in the development of design and distribution obligations and product intervention powers in Australia
  • Explain the overarching principles regarding design and distribution obligations
  • Identify how ASIC intends to exercise its product intervention powers in general terms and with respect to sectors it has announced it is planning to use them for
  • Compare international implementations of design and distribution obligations and product intervention powers with Australia’s
  • Evaluate how the conduct of financial services institutions in Australia will be impacted by design and distribution obligations and product intervention powers.

3 CPD points

Compliance Fundamentals

Our Compliance Fundamentals will give you the tools to achieve more effective financial services compliance in your organisation.

We explain how Australian Financial Services licensing works examining the main regulatory guides and offering practical tips for use in the workplace, containing scenarios, checklists and exercises.

Upon completion of Compliance Fundamentals you should be able to:

  • Discuss what your organisation can and cannot do under its licence authorisations
  • Explain ASIC’s purpose, powers and current priorities
  • Develop tools and strategies to meet your organisation’s compliance obligations under its licence
  • Manage conflicts of interest, disputes, breaches and other compliance issues
  • Build you and your organisation’s compliance skills and resources.

Conduct risk

Improving culture and conduct in the workplace

Treating your internal people and customers well is good for business. Here’s our exploration of how you might successfully navigate the interplay between culture, ethics and conduct in your organisation and beyond.

In the wake of the Royal Commission and increased scrutiny of financial services on the part of regulators and customers alike, you might find this course rather timely!

In this course you will learn to:

  • Define what organisational culture is
  • Examine the components that comprise organisational culture
  • Analyse the influences of internal and external factors on organisational culture
  • Discuss the importance of ethics in decision making
  • Identify contributing factors to poor and sound organisational culture and conduct
  • Outline some of the measures available to responsible managers to help shape organisational culture.

3 CPD points

Managing ethical dilemmas in financial services

Whether it’s a general discussion about consumers’ increasing trust of business and social networks over institutions, or a specific focus on the interrelationship between corporate culture and professional conduct, commentary about ethics is everywhere.

What is ethics and how does an organisation go about using ethical standards to cultivate a flourishing workplace culture and maintain sound professional conduct?

In this course you will learn:

  • Describe what ethical standards and principles are
  • Differentiate between ethical standards and the legal framework
  • Outline the characteristics of ethics
  • Discuss drivers of ethical behaviour
  • Explain why ethics and an ethical approach are crucial in financial services
  • Outline an ethical decision-making process
  • Distinguish between Codes of Conduct and Codes of Ethics
  • Summarise common breaches of ethical standards in financial services, including the attitudes, behaviours and activities that give rise to them
  • Analyse case studies to identify ethical issues.

3 CPD points

FNSSS00013 Business Ethics and Conduct Skill Set

Our FNSSS00013 Business Ethics and Conduct Skill Set provides foundation knowledge on identifying ethical dilemmas and applying ethical frameworks and principles to make sound decisions. Includes case studies contextualised to financial services workplaces. Also earns you a nationally recognised micro credential.

Comprising three (3) core topics plus three (3) case studies.

  • The core topics provide foundation knowledge on ethical frameworks and ethical decision making.
  • The case studies are examples of real-life ethical dilemmas faced by financial workplaces, and provide an opportunity to identify, analyse, reflect on and, ultimately, mitigate conduct risk from occurring in your own organisation.

You will learn to:

  • Describe ethical standards, principles and the legal framework
  • Discuss and analyse drivers of ethical behaviour, including culture, rewards, punishments and law
  • Evaluate why ethics and an ethical approach are crucial in financial services
  • Outline ethical decision-making processes and frameworks that can be applied at workplace
  • Identify organisational policies and procedures for managing ethical issues
  • Summarise common breaches of ethical standards in financial services, including the attitudes, behaviours and activities that give rise to them

Find out more

Want to equip others in your organisation?
Our Compliance Fundamentals course explains how Australian Financial Services licensing works, examines the main regulatory guides, and suggests real-world tools to use in your workplace.