Policy 2.0 innovates in how regulated firms manage their policies, replacing large document-sets with a principle-based approach that is significantly easier to manage and offers greater clarity and insights into how business instructions have been implemented.
Approach Policy 2.0 replaces
Policy 2.0 replaces large documents suites consisting of Standards, Policies and Procedures. Due to the volume of information contained in these documents, coupled with extensive cross-referencing, business engagement with these documents is minimal.
This result in a disconnect between the instructions set out in the policy documents and business operational realities. This presents significant operational challenges when confirming to the Board that the business is delivering against the Board’s expectations as per the policies.
A new approach
Within the business policies, there are nuggets of information, we call these Policy Principles. CoVi’s approach allows firms to build their instructions around these Policy Principles.
Policy principles outline the high-level outcomes the Board expects the business to achieve. Once the Board has defined a policy principle, the executive responsible for the policy principle defines the CORE Elements associated with that principle that help the business establish the means by which they will manage, measure and monitor business activities in support of the policy principles.
Where the CORE Elements include:
- Risks: What could go wrong if the principle is not achieved?
- Controls: What needs to be done by the business to achieve the policy principle outcome?
- Indicators: What measures can be monitored to ensure the policy principles is being achieved?
- Actions: What actions are taken by the business when things don’t go to plan?