A Brief Look at the Role of Management Information in Financial Services

Management Information or 'MI' as one likes to say must be sufficient to support individual decision-makers in their day - to -day responsibilities to provide appropriate oversight and governance. But what does that mean? What does adequate mean? Moreover, how much information is required to support business decisions. Well, that will depend on the particular business, the nature of the services and products offered, and the nature of the risks.  Most importantly, it will depend on the specific aim of the regulatory requirements and ensure that the firm is making decisions and highlighting potential issues faced by the firm. 

Management information must exist and be made available to the relevant stakeholders and forums which provide the day-to-day oversight and decision-making capability. Moreover, there must be sufficient MI available for management to fulfil its duties and to provide appropriate supervision and governance. A vital tool for control is the production of management information records. If there is insufficient information available, then senior management cannot provide appropriate governance and oversight. If information is unclear or fails to highlight operational risk, then senior management will not be informed of the issue, which is a significant risk for regulators and senior management. 

Management Information will vary depending on the specific nature of the business or committee. Moreover, management information is there to afford the relevant body to be able to make decisions accordingly. Firms can assess the level of sign-off require, which can ensure that issues escalated are provided with the correct level of attention.  Firms need to evaluate within the organisation on the workings and thought processes behind the policies and controls put in place. 

Maybe consider the following questions when challenging the management information presented:

• What is the purpose of the MI? What purpose does the MI serve in supporting relevant decision-makers in the firm?
• What MI does the firm collect? How does the firm treat the MI received? How is it verified? 
• How is MI created? By the firm; by the third-party provider; or by the offshore party?
• What role does the second or third line of defence either compliance or internal audit in the review of the MI?

Granuaile Limited

Granuaile helps individuals in financial services understand the regulatory landscape and share with clients’ a framework to enhance their ability to navigate risk. We teach clients the nature of the risks and support them to develop the skills necessary to deal with those events. 

Meet Viv 

Vivienne is a financial services professional with over 20 years’ experience in regulatory and operational risk in the United Kingdom, Europe and internationally. Vivienne has held various roles across several organisations including the Financial Conduct Authority (FCA), Royal Bank of Scotland and UK Finance. Vivienne has designed and implemented training and communications to support project delivery, including the Markets in Financial Instruments Directive and Client Money and Assets. 

How Granuaile adds Value

A critical risk for firms is staff without regulatory knowledge taking responsibility for regulatory activity. Such failures can potentially lead to a regulator imposing statutory sanctions if a firm fails to meet its obligations. Moreover, failure by an individual to act with integrity could lead to dismissal or a ban from the industry.

We work holistically, enabling people to achieve real results by understanding their motivations, skills and purpose. Our approach comes in the form of one-to-one mentoring, face-to-face training, online programmes, and retreats.

Let’s Talk 

Please message me on LinkedIn. Email: viv@granuaile.co.uk; or call + 44 (0) 203 375 6142.