How to handle competence in practice - a guide for employees and leaders

What is competence really about?

Competence is not about distrust; it is about protecting trust. When an employee assesses or makes decisions in cases where they themselves, a close associate, or a company they are connected to may have interests, doubts may arise about whether the person is unbiased. Such situations can weaken trust in the business—regardless of whether anything is actually wrong.

The most common mistakes

Before we delve into how to handle competence well, it is worth mentioning some typical mistakes:

• Silence: Employees refrain from speaking up, often because they are unsure of what is relevant and there is no simple way to speak up.

• Timing: Competence is assessed too late, often after the decision has been made.

• Manual handling: Businesses lack systems for following up, and assessments get lost in emails and notes.

The consequence? Increased risk of criticism, unknown exposures to, for example, customers and suppliers, and in the worst case, weakened reputation and violations of the law.

What should leaders do?

Foster security for employees

Clear communication about the importance of competence and an open culture makes it easier for employees to speak up.

Build systems and structure

A digital competence register is an effective tool for collecting, following up, and documenting exposures and potential conflicts of interest. This also lowers the threshold for employees to report their exposures without feeling they are bothering their private investments.

Think prevention, not firefighting

Competence is something that must be handled in advance, and it is too late when something has gone wrong. Having routines and systems to detect conflicts of interest early acts as a form of insurance: you reduce the risk of critical errors, loss of trust, and reputation damage.

Adapt the system to your routines

A good competence register should be adaptable to the company's own guidelines and practices. Some have requirements for minimum holding periods for shares before they can be sold, or set procedures for who should approve new exposures. Others have detailed rules for how close associates should be reported and involved. The better the system reflects reality, the easier it will be to ensure compliance in practice.

Do you want to know how your business can handle competence better in practice?

Contact us for more information about a competence register that suits you.