Conduct Risk has been the hot topic during the past few years and its scope falls outside the traditional domains of risk like liquidity, market, credit and operational risk.

Good Conduct - financial market and risk appetite
Looking at peers in the market will allow benchmarking and reflection if the company maintains the correct appetite, including the trends in the sector.

As there is no one-size fits all within the financial services, the recent and future initiatives will depend upon the industry they are operating in, but as well on the circumstances in the market.

The shift in focus from principles to outcomes, makes conduct risk a very difficult topic for financial firms.

How to redefine Risk Governance standards?

In the last financial crisis, all financial institutions faced severe impacts for their reputational risk and are still struggling to put governance in place. They even have a different view on how their governance should look like.
Each firm should articulate their risk appetite by clearly defining the appropriate gains in doing business. This can be a very demanding exercise for most companies. If there are different business lines, an aggregated view will be necessary and timely reflection should be part of the company policy.

Within the Eurozone no clear initiatives in that direction have been noticed. The competent authorities are collecting information without giving feedback. As a consultancy firm, we have insights that can be of great benefit to sail the right course.
Conduct risk can be seen as part of compliance but also interacting with other risk functions and customer services (sales force, commercial management, operations). In conduct risk more emphasis will be put on corporate governance and senior management accountability and buy in from the middle management.

Requiring Assistance ?

We can assist on governance, procedures and processes by combining expertise in different sectors. Not by re-inventing the wheel but rolling out tailor-made solutions that fit the firm from a customer-centric view; whilst doing we will build on the expertise of the IT companies and tools behind us.

Our culture of anticipating, clear communication and strong listening skills will ensure a robust framework for your company.

Oscar Canario da Cunha - Pideeco Network Partner
Oscar Canario da Cunha Associate Director
0 comments
Add your comment

Related articles

What is an Enterprise Wide Risk Assessment or EWRA? Learn how it helps entities understand what part of their business ...

Financial firms Mon 17 June 2019

Hiring a consultant for your financial institution? Avoid mistakes and learn what you need to know before you choose to ...

Financial Institutions Thu 08 November 2018

What is the Payment Services Directive (PSD2)? Discover the opinion published by the EBA in 2019 on strong customer aut...

Financial firms Tue 10 September 2019

What is open banking? Learn about how this innovation allows banks to better understand the needs of their retail, SME,...

Financial Institutions Sun 15 September 2019
Experts in risk management and regulatory compliance

Pideeco is a consultancy firm providing legal services, business solutions, operational assistance and educational material for professionals in the financial industry.

We are based in Brussels and we specialize in regulatory risk compliance services covering the Eurozone.

Pideeco combines professional Regulatory knowledge and technical expertise to safeguard your business’ reputational and operational risk. Our unique customer-centric approach helps us build strategical and legitimate cost-efficient remedies.

Working with us means reaching out to complementary people, allowing for original thinking and innovative vision.

Our Network Learn more about us