< Previous10 Vol. 24/12, 16–31 October 2023 COMMENT ALAN O’NEILL, MANAGING DIRECTOR, KARA Do people really resist change? Leaders can support individuals in coping with change by understanding the genetic reasons behind resistance to change Alan O'Neill discusses our psychological reaction to change. was the case, why does everyone carry a smart phone, which is a new phenomenon of the last twenty years? Why do so many drivers buy electric vehicles? Why are there now so many vegans? These are all examples of change that people have embraced in great numbers. There is a psychological concept that describes how people detest loss more than they love a gain of equal scale. For example, the psychological pain of losing 100dhs is greater than the joy of nding 100dhs on the street. Sometimes, people view change with the same negative emotion as losing something more than they allow themselves to appreciate its bene t, even when the bene t is greater. We should also acknowledge that there are genetics at play in the vary- ing ways that people respond to change. Understanding human behaviour and the factors that in u- ence it is a complex and multifaceted There is a perception that people will usually resist change. This is a misnomer. In reality, change before C-19 was and still is our new constant. If ever we needed to be reminded of the need to be change ready, the pandemic has taught us that hard lesson. There isn’t an organisation in the world that wasn’t impacted to some degree. The one good thing about this example is that every individual was aware of what was going on. Whereas more often, decisions to change are made in the boardroom and people at the front line can feel ‘done to’ and kept in the dark. So they seem to resist change. As a change management practi- tioner, I feel it’s glib and dismissive to say that people resist change. If that COMMENT arabianbusiness.com 11 Genetic, social and environment factors all contribute to how we react to change. The last word Business leaders often fail or rarely recognise this human element in change. Too often they ignore the emotions and the behaviours of their own people. However, they will read- ily try to work out what it will take to change a customer’s habits. For exam- ple, if they wish to switch a customer’s preferences from one product or service to another, the marketers and creative folk will consider the psycho- logical and emotional challenges and how to overcome them. If only they gave the same energy to internal change challenges! Rather than developing the mindset and belief that people resist change in the workplace, acknowledge that they do resist coercion. Most people will engage with change when they can clearly see why it’s happening on the one hand and on the other hand, what is in it for them. I have been administering employee engagement surveys for a very long time. The category that perpetually gets the lowest scores is communications. It’s a really tricky concept, as everyone seems to have a different expectation of what good communications look like in their role or department. Nevertheless, despite it being a hard nut to crack, we should never take it for granted. As John Kotter said, ‘you cannot overcommu- nicate in a time of change’. Change often involves stepping into the unknow, which can trigger fear and uncertainty endeavour. While there is evidence that genetics can play a role in shaping certain personality traits, it's import- ant to recognize that human behaviour is not solely determined by genetics. Instead, it is a result of a complex interplay between genetic, experien- tial and environmental factors. Change often involves stepping into the unknown, which can trigger fear and uncertainty. These feelings of psychological turbulence stem from evolutionary mechanisms that have been hardwired into our brains over millennia to ensure adaptation and/or survival in changing environments. “Fight or ight” comes to mind’ • Neurological wiring. The amygdala is a limbic system structure that is involved in many of our emotions and motivations, particularly those that are related to survival. It is involved in the processing of emotions such as fear, anger, and pleasure. This also tends to perceive change as a potential danger. It triggers the " ght-or- ight" response, leading to resistance and attempts to maintain the status quo. • Risk-aversion. Genetic factors can in uence a person's level of risk aversion. Those more risk-averse might resist change as they perceive it as uncertain and threatening, preferring the safety of the known. • Temperament. Inborn personal- ity traits, in uenced by genetics, can impact a person’s willingness to embrace change. For example, some- one with high levels of neuroticism or anxiety might nd change particularly challenging due to their heightened emotional state. • Genetic strains. Human genet- ics contribute to the variable responses to change. Some individ- uals might possess genetic predis- positions that lean towards caution and familiarity, while others might have traits that make them more open to embrace change. Leaders can support individuals in coping with change by understand- ing the genetic reasons behind resis- tance to change. That should help to inform strategies to address the change e ectively and create a more resilient and dynamic workforce. However, it is crucial to remember that genetic in uences are only part of the equation. Social and environ- mental factors, upbringing, experi- ences, and learned behaviours also signi cantly shape how individuals respond to change. Thankfully, humans have the capacity to learn, adapt, and develop new coping strat- egies that can override initial resis- tance to change. There are a number of possible reasons for change programmes fail- ing, and for me the biggest one is to do with people. That doesn’t mean that people are inherently di cult, it’s just that if we’re asking them to think or behave differently, they should be respected and consulted in the change, where relevant and appropriate. C-19 reminded us of the need to be change ready.12 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y Growth through innovation Dr. Omar BinSulaiman, Founder and Chairman of the BinSulaiman Group — OBS, has led the group to success growth in its history, and he returned to manage it directly. Following the crisis, he mobilised and faced the grave challenges with the cessation of work that threatened the existence of the group, which was close to laying off its employees. The team responded rapidly by forming an emergency work team to manage the crisis and a team to promote innova- tion contributed to saving jobs and avoiding employee layoff s. Sustainability, environment friendly As for sustainability, which is the topic of the day, OBS has long followed sustainability standards. They have developed and brought to the market environmentally friendly products since 1999, specifi cally in the automotive aftermarket sector, where the focus was not only reduc- ing the emissions from cars but also neutralising100 percent Nitrogen Monoxide and 50 percent Carbon monoxide from the emissions of the gases from petrol and diesel vehicles. ECONOMY BINSULAIMAN'S vision is not to be the largest company but to be the most successful BinSulaiman Group - OBS has sought to achieve the highest rates of growth thanks to the innovation and sustainability that applies to all the group’s companies to ensure success at the global level at a rapid and unprecedented pace for the group. Dr. Omar BinSu- laiman, Founder and Chairman of BinSulaiman Group — OBS, in a response to an inquiry about the most prominent leadership skills without which success is impossible, he said, “Passion, Commitment and Persistence. These and the importance of determination, that was already embodied in the group’s response after the pandemic to begin a phase of arabianbusiness.com 13 ECONOMY OBS has long followed sustainability standards. They have developed and brought to the market environmentally friendly products since 1999 Such products and services are being used by millions of cars every year. Since then, this has been done through ADNOC, Emarat, ENOC stations in the UAE and Petromin stations in KSA, along with service stations of every global car brands. This has had positive impacts on the environment in terms of reducing the carbon footprint and emissions. Fastest growing divisions One of the fastest growing divisions of the BinSulaiman Group - OBS in its global operations, is in the beauty and perfume sector and what is known as BinSulaiman “lifestyle”. This division has the exclusive distribution rights to the leading (famous) Global luxury and artistic perfume brands: Maison Francis Kurkdijan (makers of Bacca- rat), Maison Origine – French brand, makers of Rawdah, Maison Crivelli to name a few. Under the BinSulaiman Retail division they have Scentitude – the only boutique style stores with an online presence in the region dedi- cated exclusively for artistic and luxury perfume brands like Creed, Memo, MFK Baccarat, Maison Origine, Maison Crivello, Ex-Nihilo etc. The BinSulaiman F&B division for example has the global brand illy Caff es – Italian Coff ee brand in the UAE and soon will be rolling out illy Caff es in KSA under this division. The BinSulaiman FMCG division which has the Japanese confectionery and commodity brand Zen, and Dr. O – luxury personal care brand, witnessed the fastest growth rates among sectors in the markets here in the Emirates, GCC and select Euro- pean markets. In 2024 they look forward to expanding into the markets of America and China, as they are huge markets that cannot be ignored. Research & development To ensure continued rapid growth at the same pace, BinSulaiman Group - OBS have now entered a new phase through their research and develop- ment department, where they have begun manufacturing in this fi eld. laiman Group - OBS acquired it from an international company and devel- oped OBS Bilstein Engine Flush system to be more environmentally friendly and be in line with the sustainability standards being imple- mented by Leading gas stations, global car dealerships in the GCC. In the fi eld of car washing, they developed a unique, locally engi- neered OBS Green Wash system that meets international specifications. This fully automated, computer-op- erated system exemplifi es effi ciency and precision, integrating seamlessly with accounting systems and metic- ulously determining the required amounts of chemicals and water required for a car wash based on the car's size. This also reduces wastage of water, soap, wax etc that are used for these services, thereby having a very positive impact, environment, and operational and fi nancial effi cien- cies for our customers. OBS’s vision is not to be the larg- est or biggest company but to be the most successful and distinguished company in all the sectors that they operate in. F&B. BinSulaiman Group has the global Italian brand illy Caffes as part of their portfolio The research and development department includes an elite group of engineers with comprehensive expe- rience, in addition to junior engineers, so that we combine diff erent genera- tions to attract a diversity of skills among diff erent generations. Through the research and devel- opment team, BinSulaiman Group - OBS develops and manufactures products, which are far advanced and even superior to German and American automotive aftermarket products, in addition to the fact that they are not even available in the American markets. For example, they now own World’s only and #1 Vehicle Engine Flushing system. A system that cleans Car engines from the inside. BinSu-14 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y Why building a risk-aware culture averts grey swans In a world of uncertainty, proactive management will be key You've probably heard the term “Black Swan” – those events with cata- strophic impact that are so scarce even the possibility they might occur is unknown. While Black Swan events can be explained with hindsight, there is no way of accurately predicting them. Or at least, only a few outliers do. As an illustration, consider the burst of the dot-com bubble in 2001 or the Global Financial Crisis of 2008, where a small group of prescient short sellers struck it rich, while the vast majority su ered substantial losses. In a similar vein, the unexpected blockage of the Suez Canal in 2021 by the massive container ship Ever Given is another striking example of a Black Swan event. This event, which brought one of the world's most vital trade routes to a standstill for six days, disrupted global supply chains and showcased the vulnerabilities of the interconnected global economy. Much like the dot-com shock event and the nancial crash, the Suez Canal incident highlighted how, despite our best e orts to model and BY LISA MEEKS, ACTING CHIEF, GROUP RISK ASSURANCE SERVICES, AL GHURAIR INVESTMENT ECONOMY MENA businesses are taking a forward-thinking approach to anticipate change and harness opportunities. Every organisation needs to recognise risks before they threaten business-as-usual, mitigate them when they arise, and recover from the damages they may cause. But the rapidly increasingly probability and complexity of risks make it harder to recognise risks. And so, creating a risk-aware culture has never been more critical for an organisation. arabianbusiness.com 15 ECONOMY Every organisation needs to recognise risks before they threaten business-as- usual, mitigate them when they arise and recover from the damages assess risks, we remain susceptible to sudden and extraordinary disruptions that can have far-reaching and unfore- seeable consequences. Although Black Swan events often grab our attention due to their perceived fear factor, our primary focus should shift to "Grey Swans." Grey Swans represent events that are not only possible and known but also possess the potential for signi cant impact. These events can be antici- pated and proactively managed through prudent risk mitigation strat- egies. Population growth, global warming, rising debt, the impact of Brexit and geo-political issues are Grey Swans with risks that can be foreseen and mitigated through prudent risk management. Likewise, COVID-19 was a Grey Swan – despite what some may claim. In the Middle East and North Africa (MENA) region, the proactive management of Grey Swan events is exempli ed by the signi cant strides made to diversify economies beyond oil, by investing in renewable energy, adopting digital transformation and prioritising the wellbeing of the resi- dent population. Governments and businesses in the region are not just identifying risks but are actively securing a future that is less depend- ent on traditional vulnerabilities. The UAE's Mars mission, Saudi Arabia's Vision 2030, and Egypt's substantial investment in solar energy are testa- ments to the region's commitment to innovation and sustainability. These initiativ es demonstrate the forward-thinking approaches that MENA businesses are taking to antic- ipate change and harness it as an opportunity, fostering a risk-aware culture that is both resilient and visionary in its scope. One certainty is that more uncer- tainty lies ahead. Creating a risk-aware culture in preparation is thus essential for organisations in an increasingly complex and uncertain environment. Adopting a proactive approach to risk management begins with a human-centric focus and a supportive culture. When people feel empowered Companies can make informed deci- sions and allocate resources more effectively by ensuring continuous monitoring and assessment of risks. In a world increasingly impacted by natural disasters, social unrest, climate change, and corporate scandals, busi- nesses cannot exist in isolation from societal and environmental contexts. But when managed e ectively, risks can transform into opportunities. Consider environmental, social and governance (ESG) growth as one of the most prominent examples. While sustainability and corporate responsi- bility are becoming business impera- tives to protect shareholder value, the increasing necessity of ESG re ects the changing priorities of stakeholders, from investors to consumers. Ignoring ESG considerations can have signi cant repercussions, from reputational damage to financial penalties. Companies that fail to address ESG issues are more likely to face regulatory scrutiny, legal chal- lenges, consumer boycotts and the rising demand for ESG disclosures. Even future talent is increasingly seeking employers who align with their values. But by allying with broader sustainability goals, risk awareness can also become a driver of innovation, growth, consumer loyalty and a positive point of di er- ential in the marketplace. Issues surrounding ESG highlight just one of the many ways the market- place is changing. From geopolitical instability, resource scarcity, an increase in extreme weather events, shifting consumer preferences, a growing digital marketplace, social media negativity, cybersecurity breaches, and data loss from system outages, the risks in modern business will be increasingly found in more places than ever. Many of them can be disastrous to an organisation. Some can be turned into advantages. But all must be addressed through a risk- aware culture. So, can you identify the Grey Swans? If not, it's time to intensify your e orts and proactively mitigate these risks. Lisa Meeks discusses the need for proac- tive management. and well-prepared to tackle risks, they are more inclined to take ownership, share valuable insights, and collabo- rate across departments to ensure the organisation's resilience. This supportive culture is under- pinned by open communication, collaboration, and continuous learn- ing. It equips employees with the tools, training, and forums necessary for discussing risks and understanding the company's risk exposure and strat- egy. Providing the necessary tools and training sessions, open forums for discussion, and clear communication about the company's risk exposure and strategy are crucial. When everyone is vigilant for potential risks, an organi- sation signi cantly reduces the likeli- hood of being caught off guard by previously unnoticed vulnerabilities. This cultural shift should be led by the organisation's leadership. By fostering such a holistic culture and setting the tone from the top, leaders can ensure that risk management is a collective responsibility. It creates a broader understanding of the organ- isation's operations, industry trends, and the external environment. 16 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y Facing nancial crime in the fourth industrial revolution The future is ours to shape as we confront the risks of the fourth industrial revolution The inaugural ‘Risk 4.0’ Forum was held as part of the Abu Dhabi Finance Week, spon- sored by the UAE Executive O ce of Anti-Money Laundering and Counter Terrorism Financing. For the global community engaged in the ght against nancial crime, the inclusion of the Risk Forum to exam- ine the nancial crime risks during a period known as the ‘fourth industrial revolution’ is not only timely, but of critical importance. The term ‘fourth industrial revo- lution’, as coined by the World Economic Forum, refers to the current BY HAMID ALZAABI, FOUNDING DIRECTOR GENERAL OF THE EXECUTIVE OFFICE FOR ANTI-MONEY LAUNDERING AND COUNTER TERRORISM FINANCING ECONOMY Fourth Industrial Revolution refers to the current era of connectivity, nalytics, automation and advanced manufacturing technology.arabianbusiness.com 17 ECONOMY Financial crime is a global problem, costing the global economy an estimated USD12 tn, equal to or larger than the annual GDP of major economies. era of connectivity, advanced analyt- ics, automation, and advanced-man- ufacturing technology. Financial crime is a global prob- lem, costing the global economy an estimated USD 2.1 trillion, equal to or larger than the annual GDP of major economies and countries, including G20 nations. This staggering number excludes corruption, tax evasion or cybercrime, underlining the signi cant damage caused by criminals, from drug and human tra cking to environmental and climate change-related crimes. When we look to the lessons of history, and those previous ‘revolu- tions’, we see that key moments in time bring about signi cant change, with some transitions curbed, other initiated, and some accelerated. Today, we face a pivotal question: does the fourth industrial revolution signify an increase in threats from financial crime, or will it facilitate e orts to counter such criminal activ- ity? At stake is the integrity of the global nancial system, the health of our economies, and the right of citi- zens to live free from crimes related to money laundering and the nanc- ing of terrorism. Financial crime is never victim- less, it a ects us all. We believe that the future is ours to shape. By coming together, as we did last week at the Risk Forum, we can mitigate the emerging risks brought about by the fourth industrial revolution and create major develop- ment and investment opportunities. The fourth industrial revolution can be characterised by three major transitions: in technology, energy, and world order. All three transitions significantly impact how financial crimes are committed, and how we are combatting them. The technology transition, well documented with innovations such as online nancial products (such as buy now pay later), the Metaverse and virtual assets, has transformed the nancial system. And the scale of our response is considerable: a study by Juniper Research estimates that global ary and July this year compared to the same period in 2022. Together with the UAE’s hosting of COP28 this year, it is crucial to note that the nancial system continues to be abused to launder money from climate crimes, with the Illegal Wildlife Trade threatening biodiversity to the value of USD 200 billion annually according to estimates by the World Bank. At COP28, the Executive O ce is supporting and taking part in the International Initiative for Law Enforcement of Climate Crimes, led by the UAE Ministry of Interior and United Nations O ce on Drugs and Crime. We must remain vigilant to green transition risks from corruption, fraud, and counterfeit goods. Addressing challenges from the fourth industrial revolution and its related transitions will require robust international cooperation and e ective partnerships with the private sector. It will require renewed commitment, su cient resourcing, and a prioritised approach to sustainable and continu- ous AML/CFT systems. Hamid Alzaabi. Founding Director General of The Executive Of ce for Anti-Money Laundering and Counter Terrorism Financing. software spend on financial crime prevention tools will exceed USD 28.7 billion by 2027, increasing from USD 22.1 billion in 2023. While these technologies o er new opportunities for fraudsters, we are witnessing a proliferation of cyber- crimes targeting corporations and individuals. Advanced technologies such as AI, VR, and machine learning, provide advantages to law enforce- ment and criminals alike. However, the power is in our hands. Global efforts are having an impact, particularly in cryptocurren- cies, with Chainanalysis reporting a 65 percent reduction in crypto in ows to known illicit entities between Janu-18 Vol. 24/16, 16 – 31 December 2023 SUSTAINABILIT Y Bridging the gap: Financial empowerment in pursuit of social justice Financial empowerment is a critical issue cutting across all socioeconomic backgrounds Social justice is the foundation upon which a fair and equitable society stands, and there’s never been a more crucial time to emphasise its importance. Despite the significant progress humanity has made over the past years, and in every conceivable eld, there is prevailing sense that the principles of fairness and equality have been sacri ced at the altar of that progress. It’s an issue we ignore at our collective peril and it’s critical to re-calibrate our strategies and plans for the future of the planet and the human race, keeping this important aspect in mind. Financial empowerment Financial empowerment is a critical issue cutting across all socioeco- BY MARILYN PINTO, FOUNDER KFI GLOBAL FINANCIAL INCL USION Financial empowerment means equipping individuals with the knowledge and skills necessary to make informed nancial decisions.arabianbusiness.com 19 FINANCIAL INCLUSION At its core, nancial empowerment means equipping individuals with the knowledge and skills necessary to make informed nancial decisions nomic backgrounds. The discussions often revolve around the lack of it, the challenges in accessing it, and its frequently undervalued importance. However, an aspect of financial empowerment that’s often over- looked is the profound implications it holds for social justice, with its potential to empower and uplift indi- viduals and communities. At its core, nancial empowerment means equipping individuals with the knowledge and skills necessary to make informed financial decisions. This includes understanding crucial concepts such as budgeting, saving, investing, and managing debt. Without this foundational knowledge, individ- uals may nd themselves trapped in cycles of poverty, victims of predatory lending, or unable to capitalise fully on economic opportunities. Addressing marginalisation One key aspect of nancial empower- ment as a social justice issue is its impact on marginalised communities. Historically excluded from accessing nancial resources and opportunities, certain groups face a cycle of disad- vantage and limited economic mobil- ity. Framing nancial empowerment as a social justice issue aims to break down these barriers, fostering more equitable opportunities for all. Bridging the knowledge divide One of the key intersections of nan- cial empowerment and social justice lies in education. Ensuring that nan- cial literacy is accessible to all, regard- less of socioeconomic background, becomes a powerful tool for disman- tling inequality and thus promoting social justice. Knowledge of personal nance equips individuals to make informed decisions, promoting economic stability and resilience. Social implications Financial empowerment extends beyond individual empowerment, in uencing society at large. Individu- als with a robust understanding of nancial concepts navigate complex and race. Historically, women and minorities have faced signi cant chal- lenges in accessing nancial resources and opportunities, resulting in disparities in wealth accumulation and economic empowerment. Approaching nancial empowerment through a social justice lens works towards bridging these gaps, creating a more inclusive nancial system. Making change happen Addressing these daunting challenges and grasping these opportunities requires a financial empowerment initiative that’s consistent, standard- ised and scalable. One in which di er- ent stakeholders collaborate and leverage their resources to bring this critical education to more of the indi- viduals who need it. Ultimately, financial empower- ment transcends numbers and calcu- lations; it is about empowering indi- viduals and communities to take control of their nances, constructing a more secure future. By addressing financial empowerment as a social justice issue, we can help tilt the scales back in favour of fairness and equality and work toward establishing a more equitable society. It's time to recog- nise the importance of financial education in promoting social justice and take concrete steps to ensure its accessibility to all. Marilyn Pinto. Founder, KFI Global. nancial systems adeptly, contribut- ing to economic growth and stability. This serves as a tool to reduce income inequality, providing individuals with the means to build wealth and create a more secure future. Closing the wealth gap The wealth gap, often exacerbated by historical injustices, is a focal point where nancial empowerment and social justice intersect. According to research by Lusardi et al (2017), a lack of nancial literacy accounts for 30-40 percent of the retirement wealth gap. Financial empowerment initia- tives aimed at reducing income inequality and promoting wealth accumulation in marginalised communities contribute to a more just and balanced society. Gender and race Financial empowerment as a social justice issue intersects with other aspects of inequality, such as gender Next >