Deep thinking required post Hayne, actuaries say
The Actuaries Institute has urged companies to think “beyond the immediate solution” when addressing issues identified by the Hayne royal commission and the Australian Prudential Regulation Authority’s (APRA) report on Commonwealth Bank.
The inquiries have flagged individual and collective greed that puts self-interest above shareholders and clients, and a reliance on regulation and process to enforce good conduct.
The institute says companies need to view issues from more than one perspective and maintain ethical standards, find ways to solve complex challenges and implement systems that reinforce best behaviour.
“The challenges articulated in the APRA report and Hayne interim report require thinking beyond the immediate solution to a much deeper understanding of the longer-term consequences of actions,” the institute’s specialist consulting actuary Andrew Brown says in a paper. “It requires greater adaptive capacity in individuals, teams and systems.
“The implications are not only for organisations but also for their shareholders, regulatory bodies and community.
“This requires a significant uplift in investment in building adaptive capacity.”