Working From Home Undoubtedly Creates Risk & Competency Challenges For Employers

Abstract

In an attempt to add some facts and some science into the mix, this paper, written by a WFH advocate, explores the negative impact the lack of social interaction that WFO has on employee competency and employee risk taking. Unstructured & sub-conscious peer to peer learning, action bias, hot state decision-making and ethical fading and moral justification are real, they exist, and most employers haven’t even attempted to address, quantify or remediate.

Regulators are already raising concerns about firms’ failure to demonstrate adequate controls in a WFH scenario. Rule SC1: ‘You must take reasonable steps to ensure that the business of the firm for which you are responsible is controlled effectively’.

The FCA Insight Paper (June 2020), specifically draws firms’ attention to the likely negative cultural impact of employees WFH.