Conduct Risk

Refreshed August 2024 | CPD time: 1 Hour 30 Minutes

Conduct risk can be defined as the risk to the delivery of fair customer outcomes, or to market integrity. Conduct risk can be seen as a progression in regulatory thinking that began with treating customers fairly, and which then developed through principles-based regulation, and then on to outcomes-focused regulation, before becoming conduct risk. This module assesses what conduct risk is, how it is managed, its practical application, the powers of regulators, and the importance of treating customers fairly as well as the impact of the new Consumer Duty. Although the content of the module is based on the approach taken by UK regulators, the main principles are applicable internationally.