Conduct Risk

Any action of a financial institution that leads to customer detriment or negatively impacts market stability can be termed as conduct risk. Examples of conduct risk include insider trading, mis-selling, differential pricing, conflict of interest, inadequate complaints management or an employee sharing material non-public information (MNPI) with a third-party.

Treating customers fairly has never been more central, given the heightened regulatory focus on how companies treat consumers while conducting business.

A growing number of organizations are employing software solutions to manage their conduct risk by tracking and monitoring conduct-related compliance process flows, behavioural risk scoring, document management, comprehensive approvals processing, reporting etc.

Having a conduct risk management system in place demonstrate to regulators how serious a company is about monitoring its employees and supervised persons, and can be used in defence of a conduct breach. A conduct breach can occur in even the most thoughtfully safeguarded organizations.

Contact FCRM Limited today for a demonstration of how we can help your organization achieve strong conduct risk management framework, taking into account both your short and long-term goals, and relevant regulatory requirements.