As the risk landscape continues to evolve and present new challenges, it is clear that one area of risk stands out – People Risk. Frank Brown explains that it is often the actions or inactions of people which have been at the root cause of the issues that have materialised. He adds that these risks will be exacerbated in 2022 by two main factors – staff shortages caused by ‘The Great Resignation’, and by the challenges associated with the continuation of hybrid working.

The recent guidance from the Financial Conduct Authority on the fair treatment of vulnerable customers is wide ranging in its scope and, therefore, in the resulting additional risks financial services firms may face. Frank Brown explains the important role that a second line risk function should play in relation to vulnerable customers, particularly given the possible impact on a wide range of risk categories resulting from the breadth of expectation from the regulators.