Retail Conduct Risk & Culture

Course Overview

Better understand how your firm’s culture is driving conduct risk performance. And put fairness at the heart of your business.

Consumer Duty (and a wave of subsequent misconduct scandals) has focused the regulator to the issue of culture and its link with conduct. The FCA now expects you to create a culture of fairness, looking at your firm’s culture as the potential root cause of poor outcomes for your customers. But while many firms place a high value on organisational culture, far fewer understand how to link culture with conduct risk and improved outcomes for customers.

“Treat conduct risk as seriously as any other risk on your balance sheet”

Change in culture will only come when the tone at the top is right. However, it also requires staff throughout a business to understand and accept the values and practices the firm espouses. Firms must ensure that all of their processes support and reinforce the culture they want to promote.

But we know that understanding the interaction between culture and conduct risk still remains a challenge for many firms.

This interactive and practical training will help you:

• See how the FCA’s latest approach to conduct risk and culture affects your firm
• Better understand how your firm’s culture is driving conduct risk performance
• Protect your firm from the key conduct risk areas in wholesale and retail markets
• Understand how irrational customer behaviour increases your conduct risk
• Develop a framework to assess your cultural and conduct risk performance
• Learn how to measure culture and report it in your management information
• Set your firm’s risk appetite and demonstrate good governance to the regulator

Learning Objectives

Sharpen your firm’s focus on culture and conduct risk

• Live up to your values – The culture you promote can be easily undermined by negative customer outcomes. We help you turn cultural messages into everyday operations, closing the gap between what you say and what you actually do.
• Satisfy the regulators – You’ll be better able to demonstrate through evidence that you manage conduct risk as part of your firm’s culture, showing the FCA how seriously your firm takes these issues.
• Avoid regulatory fines – In recent years fines for misconduct have reached into the hundreds of billions. Avoid costly mistakes by ensuring the behaviour of all staff and the decisions you make are focused on positive customer outcomes.
• Better serve your clients – With a smarter understanding of conduct risk, regulation and behavioural economics, you’ll be able to choose and develop the best products and services for your clients.