Satish is an ambitious junior manager in the settlements team of a major international bank. The firm experienced a difficult period some years ago, when it struggled to keep up with a greatly increased flow of daily transactions, the consequences of which led to adverse comment by the regulator.
More staff were hired and a commitment was given to the regulator that appropriate processes would be put in place to monitor the firm’s performance in the affected area. This led to the introduction of an internal reporting system, which is seen as increasingly onerous and somewhat irrelevant by those not involved in the firm’s earlier problems. As a result, the requirement for signature by nominated position holders is not always followed to the letter.
Approaching year-end, Satish is asked by Eamonn, his manager, to ensure that the departmental management information (MI), which Satish co-ordinates and analyses, is up to date for discussion at the heads of division meeting. Bearing in mind the previous and well-documented difficulties of his team, Eamonn will be the focus of attention and, as the meeting is off-site, he has to depart the previous day.
Satish is feeling under some pressure, but is determined to meet all his deadlines, conscious that his chances of promotion will be influenced by how well he performs at times like this. Consequently, he comes in early and stays late to ensure that he can keep on top of the daily routine, as well as meet Eamonn’s needs.
The end of the reporting period approaches and Eamonn, anxious to get his figures as early as possible, begins to press Satish for them. Satish is also reminded by the firm’s regulatory reporting unit that his department’s report is due and that it needs to be signed off by Eamonn, as head of department. This requirement of the firm’s operating procedures, was introduced as a result of the commitment given to the regulator.
As his deadlines loom, Satish provides Eamonn with his MI and takes the opportunity to remind him that he will also need to sign off the regulatory report, which will be ready the next day. Sounding exasperated, Eamonn says that he is much too busy preparing for his meeting to be concerned about “that sort of stuff” and suggests to Satish that, if he is confident that it is correct, he should sign it on Eamonn’s behalf. Satish is aware of the firm’s procedures, but does not feel able to say anything to Eamonn at this particularly stressful time and is relieved simply to have completed the MI.
The Dilemma
The following day, the regulatory report is completed and is given to Satish for him to obtain Eamonn’s signature. Satish tells his colleague that he will see whether he can get Eamonn to sign it, but he is enormously busy and about to leave for the airport.
Satish waits until Eamonn appears to be free and goes into his office with the report, which he asks him to sign. “I told you yesterday that you could sign it” says Eamonn, heading for the door. “It’s only a report and you know what it is all about. You have my complete confidence”.
Options
Satish is torn between doing what his boss has told him to do and complying with the firm’s procedures. He considers various options.
- If he signs the report, he will keep Eamonn happy, but he will be breaching company rules.
- If he does not sign but waits for Eamonn to return, the report will be late and the department will look bad again, which may affect his chances of promotion.
- If Eamonn has told him to sign the report, surely he can safely do so?
- Perhaps he should explain to the regulatory reporting unit why Eamonn’s signature is missing and say that Eamonn authorised him to sign the report?
The verdict
Satish should explain to the regulatory reporting unit why he has been unable to obtain Eamonn’s signature and advise them that Eamonn has authorised him to sign the report.
Further reading