WHAT IS CONDUCT RISK? Since the FCA took over supervision of the consumer finance sector from the OFT and published its Risk Outlook in 2013 - Conduct Risk has rapidly become the new buzzword and a constant talking point for Regulators & industry leaders - with many businesses frantically trying to implement change programmes to make sure an appropriate culture is embedded in their businesses. The cause of much concern is - does anyone really understand it? In fact the FCA make a point of not defining it – the view seems to be that the firm itself should define the concept according to how it affects them. This leaves many firms with a dilemma of introducing appropriate principals of Conduct Risk across multi roles and business sectors.
Embed The Right Culture Promote a culture of prevention and detection Encourage people to ‘speak-up’ without fear of consequences Move away from traditional sales led bonussystems and look at ethical and customer focused rewards Use training to embed the culture deep within the organisation (top to bottom) Empower Staff To Provide The Right Customer Solutions Ensure training is focused on treating customers fairly Give your staff the necessary supporting aids e.g. product information sheets Embed conduct risk considerations into any new product launches and throughout its lifecycle