Markets and reputation biggest super risks

Market disruption, reputation damage, and financial performance are the main risks to the superannuation and investment industry, according to a survey.

The survey by Riskwise Professionals and SUPER Recruiters found these risks were followed by cybercrime, and regulations.

SUPER Recruiters principal, Guy McKanna said: “Reputation damage is often typically caused through front line staff not having clear unambiguous instructions, training, and understanding of product disclosure requirements and superannuation rules”.

Related News:

“This is particularly relevant given the high profile cases of inappropriate advice ascribed to predominantly bank-owned or franchised distribution channels,” he said.

“As management should know well and truly by now, embedding a proactive culture of risk goes a long way to lifting the game. Improving an organisation’s culture of appropriate selling practices should be high on their agenda.”

The survey also found respondents thought that engaging with external consultants would be the best way to prepare for risks.

“The strong response for accessing external expertise would suggest that organisations are not solely comfortable with their current level of risk preparedness and/or the frameworks under which they operate,” McKanna said.

Respondents also said that building stronger controls into investment processes, in particular automating processing technology, would help better identify risks.




Related Content

Super industry not part of scandal-plagued financial services

The superannuation industry should be regarded as standing apart from what represents a scandal-plagued banking and finance sector, according to the p...more

SMSFs hit back at industry fund accusations

A key industry fund organisation has been accused of being a long way off the mark in its criticism of self-managed superannuation funds (SMSFs) inclu...more

Contributing to a better outcome

Bryan Ashenden looks at the new rules of calculating the bring-forward provisions for non-concessional contributions as they have never been more comp...more

Author

Comments

Add new comment