Humanizing Rules

Manage and mitigate the human side of risk

In Humanizing Rules: Bringing Behavioural Science to Ethics and Compliance, veteran risk adviser and trainer Christian Hunt delivers an incisive and practical discussion of how to mitigate the risk of people doing things they shouldn't or failing to do things they should. In the book, you'll explore effective strategies for achieving compliance that work with – rather than against – the grain of natural human thinking and behaviour.

The authors challenge existing presumptions about managing risk and show you practical techniques and examples you can deploy today in your own organisation. You’ll also find:

• Strategies for preventing adverse events that go beyond simply assuming that, because someone is employed, they can be told what to do
• Techniques for risk mitigation in environments which are difficult to codify
• Ways to improve positive engagement on the part of employees critical to risk management

An effective and essential text in managing the human contribution to adverse and negative events, Humanizing Rules is a must-read for compliance professionals, Chief Risk Officers and other risk executives, managers, directors, and other business leaders with an interest in reducing the likelihood and impact of risk.

Preface vii

User Manual xi

Introduction 1

PART I Introducing Behavioural Science 11

Chapter 1 A Matter of Perspective 13

Chapter 2 Right Tools for the Job 21

Chapter 3 The Traditional Toolkit 23

Chapter 4 What Is the Job? 33

Chapter 5 Introducing Behavioural Science 39

Chapter 6 Behavioural Driver 1: Our Experience and Knowledge 49

Chapter 7 Behavioural Driver 2: Other People 57

Chapter 8 Behavioural Driver 3: Context 65

PART II Humans 75

Chapter 9 Introducing Humans 77

Chapter 10 H Is for Helpful 83

Chapter 11 U Is for Understand 89

Chapter 12 M Is for Manageable 93

Chapter 13 A Is for Acceptable 97

Chapter 14 N Is for Normal 101

Chapter 15 S Is for Salient 105

Chapter 16 How to Use Humans 111

PART III The Six Rules 117

Chapter 17 The Six Rules 119

Chapter 18 Rule Number One 121

Chapter 19 Rule Number Two 125

Chapter 20 Rule Number Three 131

Chapter 21 Rule Number Four 137

Chapter 22 Rule Number Five 143

Chapter 23 Rule Number Six 149

PART IV Radar 155

Chapter 24 Introducing Radar 157

Chapter 25 R Is for Rebellious 171

Chapter 26 A Is for Adaptive 177

Chapter 27 D Is for Dissenting 183

Chapter 28 A Is Also for Analytical 189

Chapter 29 R Is Also for Remarkable 197

Chapter 30 Conclusion 203

Acknowledgements 211

About the Author 213

Index 215

CHRISTIAN HUNT is the founder of Human Risk. He’s an experienced keynote speaker, trainer, and senior-level adviser, as well as the host and producer of the Human Risk podcast and video channel. He specialises in engaging virtual audiences by delivering compelling content.

In work environments rife with physical danger, the risks posed by employees can generally be managed using black-and-white rules and regulations. In more complex, nuanced environments, where ethics and compliance requirements cannot always easily be codified, a more human-focussed approach is needed. In a world where even the most junior employee can cause significant damage to the reputation and bottom line of their organisation a different approach is required.

In Humanizing Rules: Bringing Behavioural Science to Ethics and Compliance, former Senior Regulator and Compliance Officer, Christian Hunt delivers an engaging and practical discussion of how to manage and reduce the risk of people acting in ways they shouldn’t or failing to do the things they should. In the book, you’ll find effective techniques that work with—rather than against—the grain of natural human decision-making. The book combines the findings of academic research and practical experience to reveal behavioural science-based frameworks that will help to motivate ethical and lawful behaviours.

The author challenges widely held assumptions about managing the risks posed by the people in your organization and demonstrates strategies and examples you can use today to improve compliance with ethical principles and legal or regulatory requirements. Learn why the existence of an employment contract won’t guarantee compliant behaviour and discover techniques for risk mitigation in environments that defy easy categorization or codification.

Humanizing Rules also shows you how to increase employee engagement. Perfect for managers, executives, board members, ethics, compliance and risk professionals and anyone interested in practical strategies for reducing human risk.

Humanizing Rules: Bringing Behavioural Science to Ethics and Compliance is a hands-on, rigorous examination of the management and mitigation of the risk posed by the behaviour of people working in your organization. Using the latest findings and research from contemporary behavioural science, author Christian Hunt walks you through the implementation of effective compliance frameworks that work in tandem with common human tendencies.

The book debunks widely-held misconceptions and myths about risky behaviours and how to manage them, showing you how to efficiently and quickly reduce the likelihood of one of your employees, managers, or executives causing your firm substantial reputational or financial damage. You’ll learn to go beyond mere reliance on the employee-employer relationship and dip into the nuts and bolts of why people act the way they do, as well as what you can do to ensure those actions are aligned with your company’s ethical, regulatory, and legal obligations.

An engaging and practical guide to using behavioural science to mitigate the risks posed by your organization’s people, Humanizing Rules is the ideal manual for government, business, and third-sector leaders.