Are you ready for the new Code?
23 June 2015, David Levitt, Senior Policy Executive
Due diligence, risk assessment and control processes – how businesses can prevent consumer difficulties or harm – was on the agenda for the meeting and in future seminars we’ll cover the new Special conditions arrangements and complaint handling and consumer vulnerability. Find out more information and book for the seminars.
The seminar explored the various steps involved in the new guidance on due diligence, risk assessment and control proposed in the recent PhonepayPlus consultation and what is required under Part 3 of the Code. The slide pack is available for download.
The key issues in due diligence, risk assessment and control are:
• Know your client
• Properly identify the risks
• Taking action to control the risks
• Responding to incidents
It is important to have a clear understanding of this process and to take a consistent approach. The discussion looked at the purpose behind each step, using that as a test to ensure processes were effective and things were not missed or misjudged.
There was a clear interest from representatives from across the PRS sector and the value chain in getting due diligence right, for business growth, revenue protection, and for the benefit of consumers.
As the seminar went on, it became clear that due diligence is a learning process, allowing for staff involved in these activities to develop techniques over time.
As the final step – responding to incidents - indicates, things can and do go wrong regardless of the risk assessment and planning that has been put in place. However, having effective procedures and well trained personnel to undertake these activities will help businesses respond calmly, proactively, and effectively. Having identified the risks and created an action plan to reduce the likelihood of incidents occurring, providers will be ready to respond if things do go wrong. This is good business and will reduce the impact on consumers.
The seminar generated a lot of discussion, and we are looking to continue engaging with industry in this way. The next couple of seminars will remain focussed on the transition to the 13th Code, but do let us know if there are other topics which you would like covered in the year ahead.