These may enable management to obtain a more representative view of customer reaction; those who complain may not be typical, and the regulatory body may take into account overall customer reaction. A variety of methods will be necessary as individual means may be unrepresentative (because for example only a small minority return customer service questionnaires).
Customer charter
The results of complaints and surveys must influence the controls that prevent problems. An enhanced regulatory regime means that this type of control is likely to be more important. A customer charter should be introduced. Other prevention controls may have to be better directed than they have previously; training may have to be focused more on staff in direct contact with the customer, and address specifically the issues that can cause problems with customers.
Change in audit committee role
Audit committees may have to spend more time on reviewing compliance with regulations set down by the regulatory bodies, and also on compliance with the organisation’s own customer charter. In their role as supervisors of internal audit, the committee should check that internal audit adequately consider the procedures designed to prevent problems and to obtain evidence of customer views.
Because audit committees are reviewing these matters, they may be able to anticipate future developments such as increased regulation or changes in customer demands. This intelligence will affect the discussions on strategy of the main board.
