Conduct Risk Barometer:current and emerging European regulatory focus areas


Effectively managing conduct risk will remain a key priority in 2016. European regulators continue to evaluate the systemic risks posed by misconduct to the financial system, firms continue to set aside rising and substantial sums to cover potential penalties and associated redress costs.

This demonstrates to all stakeholders that the culture within the industry is changing. This is paramount to rebuilding and sustaining trust across customers and markets. The global regulatory focus observed in 2015 by the G20, the Financial Stability Board among others, on understanding systemic impact of conduct risk on financial stability has made conduct risk a strategic priority for boards globally.

We have seen this reflected in the different programs of work being undertaken by our clients to address customer and market conduct risk and strengthen their cultures. Effectively mitigating conduct risk requires firms to align behavioral standards with their conduct risk appetite and embed this throughout all levels of the firm to ensure that every decision and action taken considers the customer and market outcome. Conduct-related fines for 16 major international banks between 2010 and 2014 totalled more than £200 billion.* There is an opportunity for firms to succeed in effectively mitigating conduct risk and avoid paying out.

Conduct Risk Barometer
To support our clients in their approach to identification, measurement and mitigation of conduct risk, EY undertook an exercise to understand conduct risk maturity levels across Europe as well as identifying key current and emerging conduct risk focus areas. The aims of this study were to:

?? Gain insight into levels of conduct risk maturity across Europe.

?? Identify the key current and emerging conduct risks facing our banking and capital markets clients.

?? Gain a more detailed understanding of how conduct risk frameworks are being embedded by our clients globally.

Through this exercise, EY has observed an intensified emphasis on effective consumer and market protection and the extension of conduct risk into strategic/boardroom agendas across Europe. Typically, conduct risk places greater onus on financial institutions so that every decision is made in the appropriate interests of the customers and markets in which they operate.

logo experttube

Video's op het gebied van Audit & Control, Actuariaat & Risk Management, Juridisch & Fiscale Zaken, Pensioenen, Schade & Hypotheken, Compliance en Investment Management.

Bekijk ons volledige overzicht op

logo CareerTube

Videoplatform met werkenbij video's van toonaangevende organisaties in de financiële wereld. Met een focus op de finance specialisatie zorgt de koppeling met de 17 (niche) vacaturesites van CareerGuide direct voor een relevant bereik.

Bekijk ons volledige overzicht op