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“Conduct beats controls every day. Fix the culture, and the controls will follow.” – Toby Billington
In this CPD episode of RiskMasters, host Julien Haye welcomes Toby Billington, a seasoned risk and compliance expert with extensive experience in conduct frameworks, risk culture, and behavioural science in financial services.
From his early days as a lawyer to senior executive roles in compliance and first-line risk management at Barclays, Deutsche Bank, and HSBC, Toby shares his perspectives on leadership, compliance frameworks, and how to build effective risk cultures.
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In this edition of RiskMasters, you will learn:
Career Shifts and Lessons Learned: Toby reflects on his transition from legal advisory to conduct and risk culture, highlighting pivotal career moments that shaped his expertise and his focus on behavioural science.
Authentic Leadership and Cultural Change: Toby emphasizes the importance of authentic leadership in driving cultural transformation. He discusses the challenges of aligning tone from the top with actual behaviours and provides practical steps to ensure leadership walks the talk.
The Role of First and Second Lines of Defence: Toby critiques the traditional three-lines-of-defence model, proposing greater collaboration between first and second lines to reduce duplication, enhance accountability, and streamline risk oversight.
The Power of Storytelling in Risk Communication: Toby highlights the value of narrative-driven risk reporting to engage senior leadership and move beyond data-heavy, technical discussions.
Emerging Risks in Financial Crime and Cybersecurity: With advances in AI and quantum computing, Toby outlines the evolving threats in financial crime and cybersecurity. He stresses the importance of staying ahead of these risks through innovation, vigilance, and behavioural psychology.
More about Toby Billington:
Toby Billington is a highly respected compliance and risk management leader with a career spanning top financial institutions such as Barclays, Deutsche Bank, HSBC, and Citi. Recognized for pioneering conduct frameworks and promoting ethical behaviour in financial services, Toby’s work integrates behavioural science into risk management strategies.
Connect with Toby on LinkedIn to explore more about compliance, risk culture, and leadership in financial services.
Tune in to this episode for an in-depth discussion on improving risk culture, redefining compliance frameworks, and managing emerging threats.
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Accreditation number: #800043
Summary of the interview with Toby Billington on RiskMasters
"Fixing symptoms without addressing root causes is a recipe for failure.” – Toby Billington
In this episode of the RiskMasters podcast, host Julien Haye speaks with Toby Billington about transforming conduct and culture within risk management. Toby reflects on his transition from legal advisory roles to first-line risk leadership, sharing lessons learned from his time at Barclays, Deutsche Bank, and HSBC.
Cultural Transformation through Authentic Leadership
Toby emphasizes the importance of authentic leadership in setting the right tone from the top. He highlights the need for leaders to embody the values they promote and discusses how storytelling can make risk conversations more engaging and effective.
Reevaluating the Three Lines of Defence Model
Toby critiques the inefficiencies and duplications in the current three-lines model, calling for greater collaboration between first and second lines of defence. He advocates for breaking down silos to create more cohesive risk management frameworks.
Behavioural Science as a Risk Management Tool
A proponent of behavioural psychology, Toby shares how behavioural insights can drive ethical decision-making and reduce conduct risks. He provides practical examples, including promoting personal accountability through visual reminders like family photos in the workplace.
Emerging Threats: AI, Cybersecurity, and Quantum Computing
Toby outlines evolving risks such as AI-driven financial crime, the vulnerabilities of global payment networks, and the potential disruption of quantum computing. He urges organizations to adopt proactive risk strategies and leverage AI tools for regulatory compliance.
Actionable Takeaways from the Episode:
• Focus on Root Causes: Avoid layering controls and instead address the root causes of risks.
• Promote Authentic Leadership: Leaders must embody the values they advocate to drive cultural change.
• Simplify Compliance Frameworks: Foster collaboration between lines of defence to reduce duplication and improve efficiency.
• Prepare for Emerging Risks: Leverage AI for compliance while maintaining scepticism and vigilance against cybersecurity threats.
Conclusion: Rethinking Risk Management
Toby Billington’s insights challenge conventional approaches to compliance and risk management. He calls for a cultural shift that prioritizes ethics, collaboration, and preparation for emerging threats, offering practical advice for leaders to build resilient organizations.
FAQ: Insights from Toby Billington on Conduct, Compliance, and Emerging Risks
What role does authentic leadership play in risk management?
Authentic leadership is critical for cultural transformation. Toby emphasizes that leaders must embody the values they promote to inspire trust and accountability within their teams.
How can organizations simplify their compliance frameworks?
Toby advocates for reducing duplication across lines of defence, promoting collaboration instead of siloed oversight, and focusing on fixing root causes rather than adding redundant controls.
What emerging threats should organizations focus on?
Toby highlights AI-driven fraud, cybersecurity vulnerabilities, and quantum computing as key risks. Organizations must leverage AI for compliance while staying vigilant against sophisticated threats.
How can behavioural science improve risk culture?
Behavioural psychology can be used to drive ethical decision-making and improve conduct by anchoring behavior to personal values and accountability, such as displaying family photos at work.
How can firms address financial crime more effectively?
Toby stresses the need to move beyond frameworks and focus on the human cost of financial crime. AI tools can help track suspicious activity, but organizations must also adopt a proactive, ethical approach.
What advice does Toby offer to emerging risk leaders?
Toby encourages leaders to build credibility by mastering behavioural science, simplifying compliance frameworks, and prioritizing culture and ethics over control layering.
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