Which of the following is NOT part of the SYSC requirements for directors and senior managers?

The reasoning behind selecting financial forecasting as not being part of the SYSC requirements for directors and senior managers hinges on the specific focus of the SYSC framework itself. The SYSC, or Senior Management Arrangements, Systems and Controls, is primarily concerned with the governance, accountability, and risk management structures within a firm.

Senior management responsibility emphasizes the necessity for directors and senior managers to ensure that their firm adheres to regulatory standards and possesses sound governance structures. Effective organization and control pertain to how firms should be structured to manage risks effectively and implement internal controls properly. The apportionment of responsibility is essential as it defines clear roles and responsibilities among senior management, ensuring accountability and oversight within the organization.

In contrast, financial forecasting, while important for overall business planning and strategy, does not fall under the specific requirements set out by SYSC. SYSC is primarily focused on the regulatory and oversight aspects, which govern how organizations operate at a structural and compliance level rather than on their financial planning processes. Therefore, financial forecasting is an important business function, but it is not a requirement outlined in SYSC regulations for directors and senior managers.