Risk training is something that should be consistently implemented throughout a business in any professional industry. In particular, companies in the banking sector should be prioritising risk management in order to avoid any costly errors.
Following the global banking crisis over a decade ago, there are more regulatory frameworks than ever before to avoid a repetition of economic downfall. This means that businesses have to take note of what they are allowed to do, and more importantly, what they aren’t.
For all areas of banking, including corporate, commercial and retail, employees are responsible for making decisions that will ultimately impact the wider business. If these decisions are not in line with the company’s ethos or specific regulations, they face being penalised heavily, thus damaging their reputation and operations.
When it comes to ensuring that employees are aware of the risks associated with the decisions they are responsible for, business leaders can utilise experiential learning programmes to get everyone up to speed.
What is risk training in banking?
Risk training in other professional sectors will more commonly lean itself towards health and safety considerations. In banking, however, risk management is focused on a wide range of business areas including credit, cybersecurity and regulation.
No matter what sub-sector of banking a specific business specialises in, there will always be risks associated with how they operate. It is therefore crucial that training is provided for employees both old and new to help them work in a way that does not pose any threat for the business.
How can experiential learning benefit risk training?
While every bank will have varying ideas on the delivery of their risk training programmes, experiential learning can serve to improve general operations. Here are three reasons why:
Making decisions in a risk-free environment
Particular methods of experiential learning, such as business simulations, allow employees to immerse themselves in an environment mirrored to a typical situation they will face in the workplace. For employees in banking, this means that they will be required to make decisions that would normally pose serious consequences, but in a safe place.
Furthermore, business simulations allow employees to reflect on their performance, which serves to improve learning retention, meaning that employees will be able to recall what they have learnt more easily in a real situation.
Working with other employees
Experiential learning methods allow employees to learn by doing, as well as developing their skills collaboratively. The benefit of this in terms of risk training is that individuals can gain ideas and advice from others, thus allowing for a more inclusive working environment.
Open and honest communication forms the basis of any positive working environment, and in banking, it is no different. If employees are able to work together and develop their skills as one, the entire workforce will be operating in a way that will minimise any potential risk.
Personalised learning to improve retention
One of the strongest advantages of experiential learning for employees is that it offers them the flexibility to learn in a way that suits them best. Whether it’s webinars, microlearning, e-learning or any other innovative technique, experiential methods can be specifically constructed with individual employees in mind.
When it comes to risk training in banking, employees will benefit by learning how to navigate the various requirements of their role in a way that suits them best. Here at MDA Training, our bespoke experiential learning solutions are designed to improve engagement and boost productivity. For more information, please visit our services page here.
Risk training can ultimately be improved in the banking sector if the right experiential learning methods are adopted. For leaders, taking the time to engage with their workforce in this way can save the business vast amounts of money in the long run, as their employees will be prepared for what’s ahead.