New Age CEO
One of my newish roles in life is mentoring CEO’s and other senior management in the financial services sector as they prepare for their day with destiny – the Significant Influence Function interview with the Financial Services Authority in Canary Wharf.
I once looked up at these people with a sense of awe. In this brave new world, I now feel for these individuals with a sense of sympathy.
What essential qualities must the ” new age CEO” possess to convince the powers that be that he / she is fit and proper to lead their nominated business?
Leadership
Firstly the interviewee has to demonstrate leadership skills. This means respectful assertiveness with a clear sense of direction for the business. That said, the sense of direction must be pointing in the same direction as the FSA’s intrusive compass.
Organisational Skills
It is essential that the interviewee understands the concept of organisation. A clear idea of the essential units and components of a well-run bank must be demonstrated including notions such as segregation of duties, corporate governance and balance.
Chief Risk Officer
The annointed one is expected to demonstrate the knowledge to behave as the “de facto” ultimate chief risk officer. This requires an understanding of market, credit, insurance and that mysterious class of risk, operational risk.
By an understanding, the CEO must be able to hold a conversation explaining the nature of these risks in relation to the products traded by the business in question. He / she needs to understand the concepts behind risk modelling and validation and be able to explain how these models are used to manage these risks. It is helpful to be able to hold court when speaking about the way quants destroyed the planet!
Chief Compliance Officer
The CEO needs to demonstrate an understanding of principles-based regulation, outcomes-based regulation and intrusion. He / she must be able to explain what “credible deterrence” means whilst swearing to support the FSA initiatives in this field.
Paying homage at the altar of Walker and Turner is another ingredient whilst explaining how the gospels preached by these eminent individuals will be practised in day to day life.
The final compliance act is to swear allegiance to the FSA and agree to confess one’s material sins.
Chief Human Resources Officer
The CEO must have a clear understanding of structural recruitment policies and the impact of remuneration schemes on the willingness of the minions to take risks and expose the organisation to calamity.
Chief Technology Officer
And finally, the CEO needs to explain that he / she understands how IT Governance is used to manage the organisation and help it achieve its strategic objectives.
As if this is not enough, there is the small matter of shareholders who expect the CEO to generate a return.
Guys, you deserve every penny and cent that you earn. If you would like to share some of these earnings so that I can make your journey to Canary Wharf less painful please telephone Sandro Boeri on + 44 207 665 5481 or e-mail me at [email protected]