An interim report on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was released by the Commissioner, the Honourable Kenneth Madison Hayne AC QC, on 28 September 2018.
Whilst there is likely to be a shake-up of the financial services industry once the inquiry is completed, it is evident from the report that the shortcomings boil down to a lack of adherence to basic business principles. With this in mind, it is a good time for businesses across all sectors to look in the mirror.
Commissioner Hayne, amongst many other things, addressed some very simple principles that I believe apply to all businesses:
These principles might seem obvious and a matter of common sense when written down like this but it is amazing how many times businesses incur liability or increase their risk profile by not adhering to them. If these principles underlie every action we take in business, this will be a step in the right direction and will negate the need for costly Royal Commissions in the future.
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