Structured Client Communications: The Key to Manage Risk in a Business Relationship
| International Journal of Finance, Insurance and Risk Management, Volume 10, Issue 1, 135-148, 2020
Purpose: The key objectives of this paper are to provide a review of the current context within a regulated sector such as financial services which call for structured communications as an integral part of overall corporate governance and to provide a practical perspective to the implementation of systems technologies which can be used to improve risk management in this sector.
Design/Approach/Methodology: The study was designed around a qualitative approach of data collection based on the author’s experience as the founder and director of a boutique software development firm. The data used as the basis for this paper is related primarily to the development and implementation of such solutions within the financial services sector. This data was supplemented with research into current best practices in communications management in a regulated environment.
Findings: The design, development and implementation of a communications management strategy is an essential foundation to the development of an ICT systems infrastructure and the related processes and procedures required to mitigate risk of poor communications with clients and other key stakeholders. Technology must be seen as the driver of innovation to meet the changing requirements of the varied client groups which demand increased convenience through multi-channel services and support.
Practical Implications: Practical experience often supplants academic qualifications when nominating and appointing directors. Moreover, female representation on the Boards of MLCs is still lacking. Notwithstanding the fact that the importance of having separate chairperson/CEO roles is acknowledged, there is likely to be strong resistance to any law rendering this mandatory.
Originality/Value: Studies relating to the importance of communications management are often lost in marketing and communications operations and do not get the attention of the Board of Directors which needs to make communications management a key element of the corporate governance framework within the organisation. This paper provides information that is of interest to members of the Board as well as senior executives within the operational departments of organisations operating in the financial services sector.