Absa Bank Uganda Enhances Ethical Awareness in Financial Sector
Absa Bank Uganda recently conducted a one-day training session aimed at equipping compliance experts in the financial sector with practical knowledge on ethical frameworks and conduct. The event was held at the Protea Hotel in Kampala and was officially overseen by Dr. Tumubweine Twinemanzi, the Executive Director for Supervision at the Bank of Uganda (BoU). The theme of the event was “Building Blocks of an Ethics Program.”
Dr. Tumubweine Twinemanzi emphasized the importance of addressing conduct risk within banks and financial institutions, particularly in light of the increasing incidents of financial fraud in the post-COVID era. He highlighted the need to treat conduct risks separately from operational risks and proposed that organizations should allocate specific attention and accountability to conduct risk management.
Tumubweine stressed that failing to take proactive measures regarding conduct risk could result in significant losses for organizations. He cited the 2008 Global Financial Crisis as an example that could have been mitigated through better management of conduct risk. Organizations were encouraged to establish a clear connection between their conduct risk and its impact on their business strategy, model, and decision-making processes.
Mumba Kalifungwa, the Managing Director of Absa Bank, reiterated the importance of ethical leadership and its role in fostering trust, fairness, transparency, and accountability in the workplace. He highlighted the benefits of an effective ethical framework, including building a positive public image, refining moral perceptions, increasing employee commitment, and fostering a sense of accountability.
Kalifungwa underlined that modern customers closely scrutinize how businesses conduct themselves and are more likely to favor organizations known for ethical practices. Furthermore, he pointed out that ethics have contributed to the establishment of standards that protect vulnerable individuals, leading to better working conditions and an improved society.
In conclusion, Mumba Kalifungwa emphasized the vital role of a comprehensive ethics framework in organizations and encouraged attendees to take steps towards making their organizations truly ethical.
In November 2022, Absa Bank held its second industry dialogue on ethics and conduct, which led to multiple banks and organizations requesting in-depth training on creating and embedding an ethics culture. In response to these requests, Absa Bank organized a full-day training session for compliance professionals from financial institutions and other stakeholders. The training aimed to empower participants with the knowledge and skills needed to promote ethics and conduct in their respective organizations.
