How Behavior Spreads: The Science of Complex Contagions

Starling Team

We at Starling are eagerly anticipating the release of the book How Behavior Spreads: The Science of Complex Contagions, edited by Karen S. Cook, professor of sociology at Stanford and Academic Advisor to Starling.

The book covers research covering over a decade by the author, Damon Centola. Damon has studied how behaviors spread through society, not unlike how diseases move through a population. While it turns out that the factors that encourage the spread of disease are quite different from those that encourage the spread of behaviors, the result is the same. By understanding the forces that encourage behaviors to spread we can learn to be proactive in our reactions to them. At Starling we have turned this insight into intuitive tools that managers can use to predict how and where behaviors of interest will spread so they can reduce risk and boost productivity.

The book is scheduled to be released on June 12th on Amazon: How Behavior Spreads: The Science of Complex Contagions

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Starling Event – Bank Culture and Conduct

Starling Team

Starling co-hosted a forum in New York this week with Thomson Reuters on the subject of reforming bank culture through the application of advances in behavioral science. Henry Engler, the North American Regulatory Intelligence Editor for Thomson Reuters, offers a detailed summary of the day’s discussions. Behavioral science tools are improving rapidly but banks face a lot more work before they will be fully able to exploit them to have an impact on their conduct risk.

Summary of the Panel Discussions: Behavioral Science and Bank Culture

Video Roundup of Panel Members: Video

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Starling Co Founder Jeff Kupfer Featured on ABA Podcast on Risk Management

Starling Team

Jeffrey Kupfer, Starling Co Founder, was recognized as an emerging industry solution at the ABA’s annual Risk Management Conference in Orlando earlier this month. Ryan Rasske, SVP of Risk and Compliance for the ABA interviewed Jeff during the Conference proceedings. Jeff introduced Starling’s platform and discussed how banks are looking to leverage our solution to increase the performance and efficiency of their compliance and operational risk management functions.

Listen to the podcast: Solutions Spotlight: Starling

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Achieving Integrated GRC in an Interconnected Digital Age | Thomson Reuters

Starling Team

Thomson Reuters and Celent have published a report on how companies are approaching the challenge of managing effective GRC programs. The authors interviewed close to 30 Tier 1 financial institutions globally to better understand the challenges facing risk and compliance executives, as well as the technology improvements that are needed to support an integrated GRC paradigm to
overcome these issues.

The report finds that leaders responsible for the various lines of defense must think of their areas as technology-enabled business ecosystems. They operate more like a central nervous system — one that governs the health of an organization through responsive two-way feedback and risk mitigation mechanisms. At the same time, they must be able to be managed and operated in a decentralized way by various stakeholders and end-users. Fortunately, the same processes that make for strong GRC controls also make good business sense and will increasingly differentiate winners from losers.

The risk and compliance executives that were interviewed expect to see real benefits from digital technologies. The current state of the art is focused on moving away from incumbent platforms towards an open, integrated GRC hub.

Such a next-gen platform would support real-time, rules-based monitoring of data and models and would enable an integrated, dynamic approach to managing risk and controls across functional areas and lines of defense. Starling is currently working with banks to realize this vision whereby behaviors and relational dynamics can be monitored in real-time to provide feedback on the effectiveness of risk management processes and controls. Further enhancements are available as Starling is able to make the connection between risk team dynamics and critical outcomes measurable.

The Report is Available: Achieving Integrated GRC in an Interconnected Digital Age

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Preventing Toxic Culture through Investment in Social Capital | Harvard Business Review

Starling Team

Kevin Stiroh, Head of Supervision for the Federal Reserve Bank of New York, describes the powerful market forces that work to encourage toxic behaviors. Furthermore, these behaviors are often not contained within firms but impose negative costs on shareholders, industry, and society as a whole. These behaviors can be mitigated through investments in social capital. Stiroh goes on to argue for a public sector role in encouraging such investments in order to build stronger, more resilient bank cultures.

Read the blog post: The Economics of Why Companies Don’t Fix Their Toxic Cultures

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