Financial institutions have become quite advanced in dealing with classical risks, controlling losses and protecting their balance sheet. But contrary to any of the classical risks, Conduct Risk forces a complete change in paradigm, since it requires financial institutions to put themselves in the shoes of their customers or stakeholders, and protect their customers ? balance sheets (in some cases against the financial institution’s own short term interests). Financial institutions now need to concentrate on protecting their indirect assets, i.e. their customers.

Slides from a 2016 Actuaries Institute of Australia presentation

Slides from a 2015 Actuaries Institute of Australia presentation

Slides from the 2016 Actuaries Institute of Australia Financial Services Forum

Widespread misconduct in Financial Services organisations prior to and since 2008 has put organisational culture centre stage in the minds of regulators. There is no one definition of Conduct Risk across the regulatory requirements for Financial Services organisations. This paper presents a research in progress development that provides the various groups and stakeholders in an organisation with a shared conceptualisation of what conduct culture is, along with a common language to communicate canonical accepted behaviours.

Regulators' fear of failure drives them from one agenda to the next, often embarking on the next big change before the last one has been completed. This is where the European insurance sector finds itself in 2016. Alongside this is a whole new agenda opening up around conduct regulation. What will this mean for the region's insurance sector?

Few would debate the importance of recognising and addressing conduct risk. The recent increased attention it has received within the financial services industry has been largely driven by ever-strengthening conduct of business supervision. This paper covers recent regulatory developments in the UK in relation to conduct risk, and our observations of best practice for robust conduct risk management frameworks.

The concept of “conduct risk” has risen to the top of firms’ and regulators’ agendas in recent years. In the UK, the FCA expects conduct risk management to be embedded into firms’ risk management frameworks, supported by appropriate management information (MI). Building on current regulatory and supervisory expectations and our experience of what works well in practice at firms, the EMEA Centre for Regulatory Strategy have identified 10 principles of strong conduct risk MI that we believe serve as a sound foundation for conduct risk MI across all financial services firms.

Conduct risk is changing the global regulatory landscape. The aim is to drive fi nancial services fi rms to revisit their approach to enterprise risk management; to move from a profi t driven business model to a strategy that places customer centricity at its heart to rebuild trust in the market. Conduct risk, and placing the customer’s best interest at the heart of everything you do, requires a shift in mind-set. Our clients often ask where do we start, how do we embed conduct risk, what sort of framework should be established?

KPMG explores the challenges that the integrated Irish financial services sector faces when it comes to measuring and managing conduct risk and how we can ensure positive outcomes across product design, customer outcome and value.