Smarter, Faster, Better: Enhancing Remediation Through Skill and Focus

In our last article we looked at how Australian Financial Services Licensees (AFSL’s) can optimise processes for better outcomes. 

In this article we explore practical steps that can be taken to develop internal capability and discipline. Looking at how AFSL’s can invest in their remediation practitioners and prioritise for customer remediation excellence. 

By enhancing the competencies of employees and strategically prioritising remediation efforts, AFSL’s can ensure more efficient and effective resolutions for their customers. These steps not only foster a proactive remediation environment but also strengthen trust and compliance, paving the way for enhanced customer satisfaction and operational excellence.

The Remediation Practitioner Experience

Employees often come into remediation roles via one of two paths: either they are temporarily reassigned from business or risk management roles to address specific issues affecting customers, or they are part of a dedicated remediation team focused solely on resolving remediation issues. 

In the first scenario, employees must adapt quickly to a role or set of accountabilities that is entirely new, needing to apply their previous experience to the specific challenges of customer remediation. This requires an understanding not only of the technical aspects of their new role but also of the broader context.

For those in dedicated remediation roles, the job demands an in-depth, ongoing understanding of remediation processes and customer impacts. These employees benefit from continuous professional development that deepens their expertise and enables them to handle complex scenarios more effectively.

The training journey should be designed to equip employees in both scenarios with the necessary skills and confidence to handle the requirements of their roles successfully.

Building up your Remediation Workforce

• Be Role-Specific: Create tailored training for both temporary and permanent remediation roles, ensuring you include real-life scenarios and simulations that mirror the specific challenges employees will likely encounter. This training should cover understanding the context of customer remediation, emphasising the goal of putting right where it has gone wrong.

• Decision-Making is Key: Implement scenario-based learning sessions where employees can practice decision-making in a safe environment. These workshops should empower employees by providing clear guidelines on how to handle complex remediation cases and make informed decisions.

• Feedback and Coaching: Establish a continuous feedback loop, including coaching sessions to review employee output against set benchmarks for regulatory compliance.

• Professional Development Opportunities: Provide remediation practitioners with access to external professional development opportunities such as conferences, webinars, or certification courses related to customer remediation. 

Prioritising for impact

Effective prioritisation of customer remediation activity is critical as it directly influences its efficiency and efficacy. It ensures that the most significant issues, those that impact customers profoundly or pose the greatest risk to the AFSL’s compliance and reputation, are addressed promptly and thoroughly.

By focusing on the right issues at the right time, organisations can effectively allocate their resources, ensuring that urgent and high-impact cases receive the attention they require. This mitigates financial impacts and operational risks, but also significantly enhances customer trust and regulatory compliance.

The Art and Science of Prioritisation

Prioritising customer remediation activity is a constant challenge for AFSL’s due to the evolving nature of the information available. At the initial stages, not all pertinent details are clear, necessitating ongoing adjustments and validations of initial hypotheses as data becomes reliable. This dynamic approach ensures that remediation efforts remain relevant and targeted.

• Customer and Financial Impact Data: Assess the severity and scope of impact on customers alongside potential financial repercussions to the organisation. This includes estimating the number of customers impacted, how they are likely to be impacted, total compensation costs, and understanding the complexity of the remediation process.

• Comprehensive Risk Assessment: Implement a thorough risk assessment framework that evaluates the potential impact of each issue on customers and the organisation. This framework should consider the impact of the event, and the severity of outcomes, aligning with the broader risk management strategies of the AFSL.

• Compliance with Reporting Requirements: Ensure that the risk-based prioritisation framework is compliant with Australia’s breach reporting regime, which mandates reporting significant breaches to regulatory bodies within specific timeframes.

• Establish a Prioritisation Body and Rhythm: Establishing a dedicated prioritisation body. This group, composed of cross-functional leaders from risk management, compliance, customer service, and finance, will oversee the prioritisation process. They should convene regularly, following a structured prioritisation cycle, to review ongoing cases, reassess priorities based on new data and feedback, and make informed decisions about resource allocation.

Wrap-up

Wrapping up our exploration into enhancing remediation practitioner competency and prioritisation, it’s clear that the right training, support, and strategic focus are fundamental to navigating the complexities of customer remediation effectively. By investing in detailed, role-specific training and creating a dynamic prioritisation framework, AFSL’s can ensure their teams are not only prepared but also proactive in addressing customer issues. 
If you’d like to discuss any of these opportunities now, or explore support from CRCG, please reach out (contact us at info@crcg.com.au or click here to submit a request online).