Are Aussie banks susceptible to fake news?
The reputational damage incurred by Australia’s major banks may be such that they will be more susceptible to the impacts of fake news, according to a new white paper released by the Actuaries Institute.
In a Dialogue Paper, Social Risks - for a financial services business, issued by the Actuaries Institute, author Ian Laughlin has pointed to risks being posed by swiftly changing social norms and the manner in which the banks may be particularly exposed.
He said fake news was a danger for Australian corporations, particularly banks, because consumers seemed to have little sympathy for banks and their boards and management.
“There is a risk that an accusation may be blown up whether it has merit or not,” Laughlin’s paper said.
He said a critical article about the banks might then be fuelled by trolling from readers and that “once trust is damaged, it is very difficult to recover”.
Lauchlin’s paper argues that what has changed is that the community has stepped up in two ways: society's expectations are rightfully much higher and tolerance for egregious practices is much lower than they once were.
“… Society's ability to see and to call out unacceptable practices and to highlight poor outcomes has become much more powerful via Twitter, Facebook and other social media platforms,” he wrote.
Recommended for you
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
The Senate economics legislation committee has recommended Schedule 1 of the Delivering Better Financial Outcomes legislation be passed as it is a “faithful implementation” of the recommendations.
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
