Conduct risk is broadly defined as any action of a financial institution or individual that leads to customer detriment or has an adverse effect on market stability. An emphasis on customer-centricity and cultural change can help avoid legal, regulatory and reputational risks while creating value for customers and shareholders.

Organisations operating in the financial services industry and capital markets that adopt a comprehensive strategy to manage conduct risk can gain significant competitive advantage.
In December 2021, BNM issued the “Wholesale Market Conduct Practices Guidance Document” that provides practical and operational guidance to market participants in managing policy, procedures and controls surrounding wholesale financial market conduct risk. Regulators across jurisdictions worldwide are making conduct risk a priority. Regulated financial institutions that fail to bring conduct risk in line face regulatory action, fines and reputational damage, which can have long-term damage to their business.

This programme is designed to provide practical understanding of the key conduct risks facing financial services industry professionals and the techniques and tools to identify, measure and mitigate conduct risk to improve business performance.