specialists in managing human risks within emerging financial markets

“It may help to understand human affairs to be clear that most of the great triumphs and tragedies of history are caused, not by people being fundamentally good or fundamentally bad, but by people being fundamentally people.” —Neil Gaiman

People are capable of remarkable things. We are also fallible. Nowhere is this contrast more evident than in our organisations; in our collective human endeavours in business, in humanitarian organisations, in government machinery and in our public and financial institutions.

No matter how great our achievements, how noble and worthy our stated intentions, human failings inevitably occur and things go wrong, often resulting in costly breakdowns and unintended consequences—not just for the organisations in question and their stakeholders, but for those they are there to serve. At a wider level such failures of integrity lead to a deeply corrosive loss of faith in the very structures we rely on to underpin society.

OSACO Group are global experts in human fallibility: how it impacts the integrity of organisations from the inside and from the outside, our trust in them, and what can be done about it.

It’s our belief that whatever the nature or size of an organisation the vast majority of damaging human behaviour—whether sins of omission or sins of commission, whether internal or external, whether fuelled by well-intentioned ignorance or malign intent—is entirely predictable, and in many cases entirely preventable.

At OSACO we have a wealth of experience in what can go wrong when people go wrong: how to anticipate it and take steps to avoid it or at least minimise the impact; how to learn from experience and make sure we evolve, adapt and get wiser for next time; how to restore and maintain integrity and trustworthiness.

We also believe that in a time of global uncertainty and political flux, that the integrity and trustworthiness of our businesses, humanitarian organisations, government machinery, financial institutions and even sporting and entertainment organisations has never mattered more.

We have to do better and we can do better. We’re passionate about it. That’s why we’re here.

reporting & consultationwhat can be done to learn, adapt & evolve?

oversight & compliancebetter structures, controls, feedback,

supervision & accountability

risk managementbetter foresight, planning &

contingency

capacity buildingtraining, resources,

recruitment

investigationsexactly what happened?

transparencyopen, fear-free culture of reporting & feedback

WHAT CAN W

E DO ABOUT IT?

BAD STUFF HAPPENS

HOW DID IT H

APPE

N?

At OSACO we have a great deal of experience in how things go wrong with people in organisations; specifically, what we refer to as ‘human risk factors’, as distinct from market, economic, political, technological or environmental risk factors.

People, individually and collectively, have a tendency to act in all kinds of ways that are not in keeping with the aims of the organisation to which they belong and are paid—for reasons ranging from well-intentioned ignorance through to self-protection and personal survival

In banking and financial services, trust is the fundamental currency. No sector illustrates more acutely the need for demonstrable integrity and trustworthiness as a basic criterion for doing business.

The succession of systemic failures, scandals and crunches that have rocked financial institutions in recent years have led to a deep global crisis of trust. Tackling this loss of faith and restoring the trust of governments, commerce and the public is a massive issue for financial institutions and regulators everywhere, in long-established financial centres as well as developing and emerging markets.

While the attention of legislators and regulators since the 2008 crisis in particular has been focussed on resilience, governance and accountability in the finance sector, more recently the fight against international financial crime—money laundering, corporate and personal tax evasion, bribery, corruption and the financing of global terrorism—has come right to the top of the public and political agenda. Immense pressure is being exerted on

THE FINANCIAL SERVICES SECTOR: TRADING IN TRUST

PEOPLE BEING PEOPLE, THINGS GO WRONG, BAD STUFF HAPPENS

through to greed, corruption and in extreme cases the desire to cause intentional harm.

When things do go wrong—and unfortunately in an organisation any size it is ‘when’ not ‘if’—it’s vital that we learn from what happens. That learning can then be translated into effective action, constantly improving foresight and the capacity to handle human risk factors, failures and their consequences.

We regard this as a natural, cyclic process of organisational self-learning and evolution. Everything we do at OSACO, every service we offer, every project we undertake, lives in this cycle.

financial institutions to raise standards, create greater transparency, better controls and safer practices. To demonstrate, in short, that the bedrock of international commerce can once again be trusted and relied upon.

At OSACO, it’s our view that while the increasingly heavy expectations and regulatory pressures on financial institutions are raising the barrier of entry into global markets significantly, this represents a great opportunity for emerging financial centres, not a threat.

History proves that seismic shifts in global markets can work in favour of players who are prepared to take radical measures, move swiftly and assert their position in a new order, unencumbered by inertia and the need to maintain the status quo.

OSACO Group’s established expertise and track record—in international finance, risk management and organisational integrity— puts us in a unique position to help clients in developing markets who want to rise to the challenges and opportunities opening up before us.

INTERNATIONAL SPORTSWe work with international sports teams, high-profile sports personalities and major sports event organisers, providing risk management and security coordination and training. We’re there to make sure teams and players can do what they’re there to do—compete at their absolute best—safely and without distraction from a host of threats ranging from international terrorism to deranged fans to corrupt gambling interests.

INTERNATIONAL BUSINESSWe work with multinational businesses, particularly those with far-flung operations in demanding environments and developing countries. We offer consultancy in oversight, compliance and governance structures; we provide expert investigations into fraud, abuse and exploitation; we provide risk management for staff sent into high-threat environments; we design and deliver bespoke in-house training. Our aim at every turn is to help businesses operate with greater integrity and accountability, and with greater resilience to the risks posed by human fallibility.

THIS APPLIES

EVERYWHERE IT

WORKS EVERYWHERE

What we’ve discovered is that this approach is universal. our expertise in each of these areas is transferable And applicable across a highly diverse client-base in multiple sectors—including business, humanitarian, sports, media and finance.

MEDIA & ENTERTAINMENTWe work with news, film and documentary crews, Hollywood production companies and high-profile celebrities, providing risk management and security coordination for film sets, shoots and excursions in high-risk locations around the world. Our role is to make sure everyone involved can travel, work and come home safely and that high-value assets are adequately protected.

GLOBAL HUMANITARIAN ORGANISATIONSWe work with UN agencies and international NGOs who are providing aid, relief and development in some of the most challenging and often dangerous places in the world. We bring our expertise in oversight, compliance and good governance, ensuring donor funds get where they’re supposed to; we investigate where things go wrong and train in-house staff in investigations and sound practice. Our clients’ staff work daily with the most vulnerable, needy and endangered people on the planet; our aim is to ensure the highest standards of staff conduct, supervision and operational integrity even in the most difficult circumstances.

OSACO IN THE FINANCIAL SERVICES SECTOR

THE SERVICES WE OFFEROSACO offer a comprehensive range of services to institutions, either as a complete package or as individual components in an ongoing journey to raise capabilities to an internationally accepted level. These include:

■ audit and ‘as-is’ assessments of existing infrastructure in regard to ISO 19600 (Compliance Management Systems)

■ firm-wide risk assessments to support senior management in steering the financial crime agenda within the business

■ project management

■ advisory services across policies and procedures, organization design, operating models, governance, risk and controls frameworks

■ capacity building, including standards of competence, recruitment, training and assessment, supply of temporary external resources in inception stages; comprehensive range of training offering through established certificated qualifications or bespoke solutions

■ resources augmentation or outsourcing services for one-off projects (e.g. remedial action projects)

THE FIGHT AGAINST FINANCIAL CRIME: A RISK-BASED APPROACHThe fight against financial sector crime has become a high political and regulatory priority in the face of organized crime, global tax evasion issues, bribery and corruption scandals and a surge in international terrorism.

The Financial Action Task Force (FATF) and government bodies have increased their efforts and are placing heavy expectations on financial institutions to support safer and more transparent practices. This includes the systematic application of a risk-based approach to the fight against financial crime, meaning that countries, competent authorities and banks must identify, assess, and understand the money laundering and terrorist financing risk to which they are exposed, and take the appropriate mitigation measures in accordance with the level of risk. Effective Know Your Customer/Customer Due Diligence (KYC/CDD) practices lie at the core of a risk

based approach, as is the ability of firms to demonstrate that they understand the risks of their customer relationships. The effectiveness of controls within correspondent banking relationships is of prime importance in the system, as firms must rely on the robustness of controls used by their respondent counter-parties to prevent the misuse of services.

Major regulatory developments are under way to translate and enforce these obligations, such as the EU’s 4th Money Laundering Directive and US Financial Crimes Enforcement Network (FINCEN). Evolutions in legal frameworks and regulations in Iran are also under way. The need to establish and demonstrate adequate risk-based compliance management systems in the area of financial crime is therefore a pre-requisite to being able to operate in international financial markets.

OSACO has a well-established expertise and track record in international finance, risk management and organisational integrity. Our focus is on sustainability and helping clients build strong, autonomous and self-learning organizations.

Our financial services team specialises in working with financial institutions that are upgrading and maintaining their compliance capabilities, ensuring they are able to operate at international standards, particularly with regard to financial crime measures. Each member of our team of financial experts has long years of practice in their respective fields, working in close partnership with clients to address their unique needs and circumstances.

OSACO LEAD FINANCIAL SPECIALIST ROLAND GUENNOU Roland is a Know Your Customer and Client Onboarding expert with 20 years of international experience in the corporate and investment banking industry across service delivery, business transformation. policy development and training.

He is the principal author of the International Compliance Association’s Advanced Certificate in Practical Customer Due Diligence and is a regular speaker at European industry events.

Based in London, Roland specialises in training and advisory services in the area of Customer Due Diligence and leads OSACO’s team of specialist corporate compliance consultants.

OSACO: WHERE WE’RE COMING FROMOSACO has its roots in New Zealand where four of our five directors originated.

The group was originally formed in response to a growing demand for experienced administrative investigators, oversight, compliance and risk management specialists in the humanitarian sector. Our work has subsequently expanded to encompass a wide range of activities with clients across the world in corporate business, humanitarian aid and development, the finance sector and international sports and entertainment.

As individuals and as a company we place a great emphasis on a human-oriented approach towards organisational integrity and successful business.

We currently have offices in Wellington NZ, London UK and Stockholm in Sweden.

let’s speakPlease contact Sean Buckley: +44 7479 808388seanbuckley@osacosolutions.com

or George Bennett: +44 7482 339905 georgebennett@osacosolutions.com

DO NO HARM. We believe that the laws of unintended consequences should be central in the minds of all organisations regardless of their purpose or business

IT’S MOSTLY PREDICTABLE. We believe that the vast majority of human wrong-doing within organisations, or perpetrated against them, is predictable and can be greatly reduced through good foresight, planning, control and monitoring

WE HAVE TO DO BETTER. We believe that the costs of human integrity failures within organisations are not just financial; they cause massive reputation damage and very often incalculable human suffering and misery

WE CAN DO BETTER. We believe that with the right commitment from leaders and stakeholders, organisations can develop their capacity for anticipating and handling human fallibility

WRONG QUESTION. We believe that it’s not a matter of ‘can we afford to address these problems?’ but ‘can we afford NOT to?’

SYSTEMS ALONE WON’T CUT IT. We believe that administrative and technical measures alone (procedures, policies, contracts, channels, hotlines etc.) are insufficient for tackling human fallibility and are no replacement for inspired cultural change, personal supervision, coaching and pastoral care.

A DUTY OF CARE. We believe that organisations have a responsibility to ensure staff are adequately equipped to deal with the exposures, pressures and temptations inherent in their working environment

WE HAVE A PROBLEM, SO LET’S ADMIT IT. We believe that any organisation employing significant numbers of people has, is or will experience damaging staff misconduct, whether or not it is acknowledged and addressed

BE TRANSPARENT. We believe that we have to address the cultures and mindsets of resistance—stigmas, fears and self-preservation—that stop misconduct being reported transparently upwards and addressed in all directions

IT PAYS TO PAY FOR RISK UP FRONT. We believe that failing to address risk in advance, and then clearing up the mess afterwards, is far more painful in monetary and often in human cost

WE CAN’T LOSE FAITH. We believe that a loss of faith in our institutions, structures, accountability and justice is a highly corrosive and damaging force in society; we have to win back trust in good process, step by step

THINGS WE BELIEVE

Jaydene buckley

Roland Guennou

DOMINIC SMYTHSEAN buckley

www.osacosolutions.com

©2016 OSACO Solutions Ltd. 10 Brandon Street, Wellington, New Zealand

Tel: +44 7479 808388email: info@osacosolutions.com