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.

UK banks have been pushed to define bank conduct and to develop new approaches to conduct risk and regulation. Regulators have expanded their focus from narrow corporate governance issues to an emphasis on making sure customers are treated fairly. As US banks undertake a similar journey, they can be guided by the experience of their UK counterparts. In this effort, an emphasis on customer-centricity and cultural change can help avoid legal and regulatory risk while creating value for customers and shareholders.

This guide provides an overview of conduct risk and the role of internal audit, focusing on the financial services sector.

Risks relating to conduct of business are attracting increased attention across financial services firms, prompted by the ever-increasing focus of regulators in this area. Senior managers are increasingly being held to account for conduct risk failings, and accordingly a strong conduct risk framework is an important tool in protecting against such failings. Based on our experience of assisting clients in this area, conduct risk management is still evolving and firms face many challenges.

On 24 July 2018, the Central Bank of Ireland (CBI) published new proposals to establish an Individual Accountability Framework for staff of Irish financial services firms which would set conduct standards and clearer lines of accountability within firms, together with new powers to pursue individuals directly for their misconduct. The proposed reforms would introduce a system similar to the Senior Managers Regime and Senior Insurance Managers Regime in existence for UK financial services firms. Enhancements to the Fitness & Probity Regime in Ireland are also planned.

Good risk governance seems to rest on the three components: knowledge, legally prescribed procedures and social values. All three components are of particular importance for assessing and managing emerging risks, which are characterized by a lack of knowledge about the likelihood and magnitude of potential positive and negative consequences. This paper reports first about a protocol of how to govern emerging risks and then analyses the patterns of risks that would fall under the emerging risk category.

A diverse array of ocean-related phenomena occur today and more are expected to emerge in the future as ocean risk evolves in response to the observed and accelerating warming, acidification, oxygen depletion and other man-made threats to the ocean.

This paper proposes an accelerated testing method for automated vehicles safety evaluation based on improved importance sampling (IS) techniques. Taking the typical cut-in scenario as example, the proposed method extracts the critical variables of the scenario. Then, the distributions of critical variables are statistically fitted. The genetic algorithm is used to calculate the optimal IS parameters by solving an optimization problem.

The benefits of autonomous vehicles (AVs) are widely acknowledged, but there are concerns about the extent of these benefits and AV risks and unintended consequences. In this article, we first examine AVs and different categories of the technological risks associated with them. We then explore strategies that can be adopted to address these risks, and explore emerging responses by governments for addressing AV risks.