Continue reading
The secret senior manager
What does the Secret Senior Manager have to say to the board about the Senior Managers and Certification Regime?
One of the first things the Secret Senior Manager (SSM) had to deal with was a host of confused committee chairs and non-execs. Sharing functions isn’t advisable, but splitting them up can also, for a variety of reasons, be less than straightforward. For example, where there was a separate NED role for the Board Credit Risk Committee, should this just be subsumed into the senior managers function (SMF) 10, chair of the Risk Committee? This depends on the overall responsibility map, as well as the experience and expertise of each individual, if not for the bank, then for the individual themselves being comfortable to sign up to the responsibilities under the new regime.
Some individuals may also feel aggrieved if they perceive responsibilities or prestige being removed from their role. Getting the corporate governance structure right is clearly something the regulator needs to be assured of. But for the people on the ground this also involves careful management of politics and people.