Behavox CEO Erkin Adylov discusses the serious reputational and monetary consequences financial firms face as a result of today’s remote working environment. The threat of employee misconduct has pushed corporate risk to new heights.
Cast your minds back to the end of 2019. The headquarters of financial firms were bustling, full of people blissfully unaware that the following year would represent the greatest change and challenge in their working lives. Coronavirus was taking hold in China and, in just a few short months, a whole financial industry – one that’s designed to thrive in a centralized work location – was about to be flipped on its head with global economic shutdowns and widespread working from home. At the same time, the SEC had just announced a record year for fines. In total, the regulator filed $4.9 billion in fines, up 10 percent from 2018.
So, what is the connection between the rising threat of huge monetary fines and the effect of COVID-19 on the way financial services operate? Well, banks, hedge funds and private equity firms were already guilty of pushing regulators too far in their pursuit of profits, and working from home has only exacerbated risk in financial services. Although the total fines for 2020 compliance breaches are still to be revealed,…
