Hr governance fheili
-
Upload
mohammad-fheili -
Category
Leadership & Management
-
view
78 -
download
0
Transcript of Hr governance fheili
HR Governance a necessity in light of the
Changing Banking Landscape…
Re-Defining HR
From Rigid Organization
Decem
ber 16
th&
17th
of 2016
Beiru
t -Leb
an
on
The A
nn
ua
l HR
Forum
To Agile & Fluid Organization
By Mohammad Fheili – [email protected]
Mohammad Fheili “Over 30 years of Experience in Banking. [email protected] (961) 3 337175
Risk & Capacity Building Specialist. Trainer in Risk & Compliance University Lecturer: Economics, Risk, and Banking Operations Currently serves in the capacity of an Executive (AGM) at JTB Bank in
Lebanon. Served as:
• Economist at ABL,• Senior Manager at BankMed• Senior Manager & Chief Risk Officer at Group Fransabank
Mohammad is a Graduate of Louisiana State University (LSU), and hasbeen teaching Economics and Finance for over 25 continuous years atreputable universities in the USA (LSU) and Lebanon (LAU).
Finally, Mohammad published over 25 articles, of those many are inrefereed Journals (e.g., Journal of Money Laundering & Control; Journalof Operational Risk; Journal of Law & Economics; etc.) and IndustryBulletins.”
Risk & Capacity Building Specialist. Trainer in Risk & Compliance University Lecturer: Economics, Risk, and Banking Operations Currently serves in the capacity of an Executive (AGM) at JTB Bank in
Lebanon. Served as:
• Economist at ABL,• Senior Manager at BankMed• Senior Manager & Chief Risk Officer at Group Fransabank
Mohammad is a Graduate of Louisiana State University (LSU), and hasbeen teaching Economics and Finance for over 25 continuous years atreputable universities in the USA (LSU) and Lebanon (LAU).
Finally, Mohammad published over 25 articles, of those many are inrefereed Journals (e.g., Journal of Money Laundering & Control; Journalof Operational Risk; Journal of Law & Economics; etc.) and IndustryBulletins.”
“Human Resources are likeNatural Resources; They’re often buried deep. You have to go looking for
them. They’re not just lying
around on the surface. You have to create the
circumstances where theyshow themselves.”
Sir Ken Robinson
… is about … Having the Right People,With the Right Abilities (Knowledge, Skills & Attitude), In the Right Place, At the Right Time.
Deciding what to do is ASIMPORTANT AS deciding whatnot to do.
Sir Steve Jobs
A Student asks his teacher:
Would you punish me forsomething I didn’t do?The teacher swiftly replied:
Of course Not!The Student happily said:
Well I did not do myhomework!
HR Management is A By-Product of the Business it Operates inThere is NO ONE-SIZE HR Management that Fits AllNot a
Job!
HR Service Delivery Strategy Continuum
Human Capital
UnderstandThe Business
The Multi-Facet Complexity of Today’sBanking Environment. Are Banks Equipped To Cope . . . ! Is Your HR Ready . . . !
1st
Com
plex
ities
1. Banking Model 2. Reporting3. Regulations4. Compliance 5. Technology
1997.lb
The Start Of The End Of Banking As We Know It
Many Banks are HERE: Buried Deep in
Complexity
In Lebanon & The Region, we are still HERE
1. Banking Model-Induced ComplexityMAXIMIZE PROFIT subject to:
RISK , REGULATORY, Compliance, Reporting, Etc. Constraints
RISK . . . Default Liquidity Maturity Others . . . REGULATORY . . .
Basel I, Basel II, Basel III
Basel IV (In the making)
Total Loss Absorbing Capacity (TLAC) Requirements
IFRS9 Requirements
Sanctions Rules
USA_FATCA Requirements
OECD_CRS Requirements
AML, CIP, KYC, DD, EDD, RBC, Etc. . . .
Uses of Funds Sources of Funds
Reserves Loans Securities Other
Investments . . .
All Types of Deposits
Borrowings Other
Sources Equity . . .
Off-Balance Sheet
Legal Issues . . .
Creative Thinking:Who can best help the Bank recoversome of the cost of Compliance?Yes, YOU: Change the ‘Rules ofEngagement’: You can Increase Traffic:
• More Clients• More Transactions which can be
achieved Through cross‐selling Follow up Diligently on the
settlements of Loans (and ‘BienTrouvé’, Updated Financials, SiteVisits, etc….)
Reduce Loss‐Events. Promote the Bank through your
Social Networks.
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
How Actively Involved is HR in Budget?
2. Reporting-Induced Complexity
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
CRS
IFR
S 9
Pillar 1: Minimum Capital Adequacy Ratios
Calculation Of Exposure
Calculation of PD/LGD
Calculationof RWA
Adjustments forCollateral Valuation
Adjustments forCredit Mitigants
Netting Balance Sheet Items
CalculationsOf Risk WeightsBased on PD/LGD
Supervisory RiskWeights and LGD
Standardized Approach IRB (Foundation) IRB (Advance)
Value at RiskStandardizedMeasurementMethods
Interest Rate Risk
Equity Position Risk
Forex Risk
Commodities Risk
Treatment of Options
Support for allThree Approaches
Basic Indicator Approach:Capital is calculated as apercentage of Gross IncomeStandardized Approach:line of Business BasedExposure IndicatorsAdvanced MeasurementApproach: CapitalComputations as per LDA
Credit Risk Traded Market Risk Operational Risk
External/InternalRating
Systems
Pillar 2: Supervisory OversightPillar 3: Market Discipline
Usage of Metadata whichEnables transparency
Capital for other Risks (Concentration, etc..)
Rules-Based Engines Risk Assessment Reports (ICAAP, CRSA,…)
Capital Adequacy Reporting
Flexible Reporting
Quantitative Reporting-IFRS 7
Qualitative Reporting-IFRS 9
3. Regulations-Induced Complexity: The Basel Accord
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
Level Of Maturity in AML Compliance
Nature & Extent o
f Efforts Dep
loyed
DD
EDD
RBA
Due Diligence
Enhanced Due Diligence
Risk‐Based Approach to AML Compliance
Enhancing Compliance Capabilities … AM
L Cost
Skills Needs
Know‐How
AML Analytics
Enhanced AML Compliance Steps require theUse of Technology. Increase reliance on Technology; Increase the need for a certain set of
technical skills; Necessitate the need to re‐design existing
processes; Increase exposure to Technology Failures
(i,.e., Risk).
4. AML Compliance-Induced Complexity
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
Client is Engaged
Compliance Cycle
Service Cycle
st1Client Interface
Interface
End
CIP, KYC
AML Compliance (Regulator Decides)Client Engagement is Constrained by: The Bank isDeemed AML‐Compliance Responsible &Accountable
Customer Satisfaction (Customer Decides)Client Engagement is Driven by: The Potential forRevenue: Interest Income, Commissions & Charges;and a Word‐of‐Mouth Free Marketing
Both Cycles Are Ongoing Processes; None is a Destination
by itself
The Most Critical CustomerInterface; Manage With Care:You Either Collect all theneeded information (CIP &KYC), or you have planted theseeds of Troubles to Come . . .
Branch
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
4. AML Compliance-Induced Complexity
• Increased Usage of ImpersonalElectronic Services
• Low Cost Electronic Services;
• Widespread and DiffusedCustomer Base.
This, in turn led to:Lower Customer Intimacy.Reduced Switching CostsBetween Different Banks
Increased Chances ofFraud
Increased the Demand forTransparency
• Less Time to Know andInfluence Customers.
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
5. Technology-Induced Complexity
5. Technology-Induced Vulnerability: Cyber Attacks
In 2015, 38% moresecurity incidents weredetected than in 2014.
Theft of “hard”intellectual propertyincreased 56% in 2015.
Staff remain the mostcited source ofcompromise (Risks).
Risk Events attributedto business partnersclimbed 22%.Source: Global State of Information Security Survey,
March 2016
Where do we go to secure that the Financial Institution is equipped to cope with this Complexity?
Service, Risk & Compliance
Sustainable
Organizational Readiness
Banking Has Evolved; Have You (Mr. HR)?
MustConverge
Must beIn Synch! Well
Informed!
The World of HR Has Changed Beyond Recognition . . .
Banking Has Evolved; Has HR?Is HR Ready?
Welfare Officer
Labor Manager
Personnel Management Human
Resources Management
• Human Capital• HR Business
Partner• People• People & HR Risk
1890’s2017’s
Organ
izationa
l Scope
Risky Business: you don’t want to be a Human
Resource Manager in a Welfare Officer’s
Mentality!
Timeline/Period
NextRobo‐HR Manager
(e.g., HR Self‐service)
HR Management Has Evolved in Response To Yet More Factors: 1,2,3,4,5.
1. New Economic Realities
How to respond to shifts in whatcustomers value and what they’rewilling to pay for.
Forging the more realistic ‘bargain’with staff needed to bring pay ratesinto line with today’s more modestreturns.
How to gain clearer line of sight tocustomers, speed up decision making andovercome institutional resistance tochange.
Shift from product‐push to customersolutions.
2. Changing Customer Expectations andthe Power to Punish
3. Digital Competitors and the Age ofInnovation
Operational barriers to entry aredisappearing as tech‐enabled entrantsuse digital distribution and advancedcustomer profiling to break into themarket.
How to create an adaptable (i.e., Agile)workforce, unbound by hierarchy,organizational siloes or restrictivepractices.
4. Rise of State-Directed capitalism
How to compete in a market in whichhigher capital and compliance costs areeating into margins and making someonce‐profitable business unviable.
How to plan and respond quickly to shiftsin government policy and investment.
Designing the role of the corporate centerto provide more central oversight andoperate in a favorable fiscal and talentrich location.
5. Equipped to Compete
Is your thinking radical enough? Do your organizational capabilitiesreflect your customers’ (and youremployees’) changing expectations?
HumanResourcesManagementLandscape & Governance
HR Management & Governance Framework
Recruitment & Selection
Payroll and otherAdministrative
issues
HR Training &Development
Coaching &Counseling
Performance Management
Delegating &Assigning Work
CareerPlanning
SkillsInventory
Primarily The Responsibility Of HR Specialists
Shared Responsibility with the Line Manager
Primarily The Responsibility Of The Line Manager But Shared with HR
The HR System
Who Does What? Learn The Fundamentals…
HR Manager
SalesEngineers
InventoryMaintenanceAdministration
Full and Consistent
Communication & Coordination with all Business
Units
HR Manager
Everyone MUST Participate In The Making Of The Organization … Implicate & Involve ALL.
Control
Foreign Corrupt Practices Act Compliance
Environment, Health & Safety Compliance
Regulatory Change Management
Employee Hotline Reporting
Legal Management
Anti‐Money Laundering
Anti‐Bribery Compliance
Competency & Training
Risk Management
Cyber Security & Vulnerability
1 2
3
HR Function HR Operating Model
What are thestrategic businessimperative that willdrive organizationalsuccess?
How will the HR functionprioritize requirements, allocateand align limited resources todeliver HR services thatcontribute to the businessstrategy and people strategy?
Service Delivery:What Activities will the HR Function do themselves? What can be Outsourced?
Infrastructure:What internal capabilities areneeded to fulfill HR FunctionStrategy?
Align HR with Organizational Strategies; Governance Done Right √
Technology
HR Talents
Processes
Organization
Governance:How will the function be led and how will related investments be managed?How will success be measured?
OUTCOMES(The Bottom Line)
How will theOrganization manageand motivate aworkforce that canexecute the businessstrategy?
What are the most effectivedelivery channels for HRservices and the related service‐level expectations?
TotalRewards
BusinessPartnering
Talent Management
HROperations
Business Strategy
People Strategy
Performance Monitoring: Metrics & Benchmarking
HR Function Excellence using existing infrastructure: Enables Execution of Strategic Priorities Throughout the
Organization• People: Efficient Structure with appropriate mix of
skills, technical knowledge and analytic capability tomeet the needs of the business.
• Process & Organization: Streamlined work processesto enable flawless administration and execution ofservices.
• Technology (and data): Integrated applications toprovide organization wide and timely data.
Informs
HR Strategy aligned with Business Strategy: Determines People Programs, plans, and
initiatives to deliver business Goals
Business Strategy: Sets Direction and Priorities for the Organization
Measures
HR Ought to Speak The Language of Business: Measurement & Analysis
• Improve Quality of Hire• Increase Workforce Productivity• Maximize Return on Workforce
Investment
• Improve Leadership• Develop Employees• Compensate Efficiently & Effectively
• Drive Workforce Engagement• Retain High Performers• Create Workforce Alignment
Grow The Business
Improve Profitability
Market Agility & Responsiveness
HR Risk Assessment Framework
Capabilities
Innovations & Learning
RiskLeadership
People
RiskPolicies & Strategies
Partnerships
Risk Managem
entProcesses
Risk Handling
Outcom
es
Results
Risk-Based Human Resources ManagementImprove Upon Your Understanding of HR Outcomes
Increa
sing
Evide
nce on
Proba
bility of
a Certain HR Outcome Occurrin
g
HR Management
Uncertainty
Ambiguity
IgnoranceHR doesn’t know what may happen,nor if it will happen due to lack of dataand information – e.g., ??? !!!HR is in denial: HR Refuses to learn
HR is not aware of the implications of whathappens when it happens due to lack ofdata and information to assist in businessimpact analysis – e.g., absenteeism,pregnancy, sick leave, etc.
Although HR understands theimplications of certain employee‐related events, but it’s completelyunaware of its chances ofoccurrence due to lack of data andinformation on loss data and riskevents – e.g., Employee Turnover,Internal Fraud, etc.
HR know what may happen, and isaware of the business implicationsof these events and is preparedand equipped to guard againstthem.
OUTCOMES
OObjectives what is the employee attempting to achieve?
UUnderstand The reasons behind the objectives
TTake Stock of the present situation . . . The Reality
OOptions Generation! The Pros/Cons of each option need to be discussed.
MMotivate to Action . . . The best way forward is understood and agreed upon.
CClarity of the gap between “What Is” and “What Should Be”
EEnthusiasm . . . Encouragement to do as best as possible
SSupport for the employee in the tasks agreed and planned . . .
OUTCOMES … As Ought to be Expressed By HR
Roles & Challenges For All Concerned The Stakeholders.
EmployeeResponsible For [his/her] Development and career
Supervising OfficerSupports and Challenges To Secure the Attainment
of Organizational Objectives
HR SpecialistProvides Advice, Processes,
Tools, Products
Staff Satisfaction
CustomerSatisfaction
BusinessPerformance
Service Excellence
Growth
Feedback Process!
A Matter of Perception!
A Matter of Taste & Preferences!
A Matter of Commitment!
Converge internally
Workforce
Sustainable
The Stakeholders and the Cycle of Satisfaction
Do the Interests of the Various Stakeholders Converge?
EquitableBearable
Viable
HR Must Do What’s Sustainable!
Attract
OrganizeOptimize
Retain
HR Specialists Ought to Focus on . . .
Through effective partnership with employees, theirrespective supervising officers, and Upper Management….
Make sure there is a clear Audit
Trail to every step
Human Resources Policies
Implementing and adhering to thepolicies
Reviewing and Updating Policies
Making Sure that Human ResourcesExpertise is Represented as part of theskill set of the Board of Directors.
Policy
Practice
Review
Expertise
The Four Pillars of HR Best Practice
HR Specialists Ought to Do It Right . . .
e.g., … In HR Planning & Development
Staff Development
. . . We Do Not Have A Strategy For Staff Development! In the absence of a clear career path for the
employee, staff development will lead to eitherEmployee Turnover or Employment Dissatisfaction.
Staff development must consist of:Status Test: Does the person have the profile werequire for career advancement? . . . Have weformulated the requirement for the next job.Means Test: Is the person capable of making acontribution to the business unit? Does the personhave a relatively steep Learning Curve? How aboutcommitment? . . .Entitlement: If the person passes the Status and theMeans tests, he/she would be entitled for moreresponsibilities and eventually a promotion.
HR Planning
. . . We Do Not Practice HR Planning! Planning in quality and quantity of staff. . . . More specifically, Succession Planning! Career
Planning! We must plan for those without collegeeducation, but very good elements.
HR Planning significantly reduces operational risk. Performing this task is relatively simple if we know
(1) What we’ve got? (2) What we need? (3) Wherewe are going? >>>> HR Governance.
Training
In the majority of our training we need to provideincentives to encourage the involvement of LocalTalents in training: Train‐The‐Trainer! Very effective,and relatively low cost training approach.
Equally important is knowledge management, andSelf‐Learning.
HR Governance is a Systematic Approach to Management that enablesthe function to achieve strategic and operational objectives andperformance outcomes.
TrustBetween
Employees & Management
Motivation Efforts
Abilities
Performance
OutcomesRewards
Securing Desired Outcomes is a Process; Not a Destination
The Organization
The Employee
Drives Induce
+=
Satisfaction
The Dimensions of Human capital: What to Attract? >>> The “KSA” Vitamin Pill
Abilities
Knowledge
(Knowledge + Skills)X(Attitude) = Abilities
Formal + Self‐Acquired
To Perform, Excel And Grow
SkillsTechnical + Soft
Human Capital Accumulation = ∑Abilities
The Retention Struggle: The Employee’s Vantage Point
Skill Marketability
Loyalty To TheOrganization
Loyalty To One’sProfession
Skill Marketability Reflects FavorablyOn The Career And The Salary Of TheIndividual
Loyalty To The Organization May HelpThe Individual Sustain A Company‐Specific Employment
Loyalty To One’s Profession Exerts TheNecessary Pressure On Knowledge And SkillBuild‐Up (Benefiting Both The Individual &The Organization)
The Struggle to Optimize: Perception is as Colorful As Reality…About You
Skills, Experience, Training, Seniority,Education, Loyalty, Performance, etc.
Your JobLevel of difficulty, Time Span, Duties
And Responsibilities, Etc.
PerceivedJob
Characteristics
PerceivedInput/Output
Of Referent Others
DesiredActual
FavorableJob Satisfaction, and
OrganizationalEffectiveness
Perception ofFairnessUnfavorable
Absenteeism, LowQuality Work,Turnover, etc.
Perception ofUnfairness
Every Employee is constantly Evaluating His/Her Place in the Organization Against Others
Allow me to Endwith …. KEEP ON DOING
DO AGAIN
DO
TRY
PLANNING
ANALYSIS
THINK
START
SUCCESSIs Not A Destination
You will always be in need of this kind ofartistry.
If you measure creativity only by the typeof technical development your team comeup with, you miss on the simple and mostbeautiful side of life! Keep It Simple Sir(K.I.S.S.)
2
34 HyenaWolf
Lion1 White Pelican