Conduct risk

Corporate governance and risk management

1.

The risk that an organisation or an individual may behave unethically, illegally, or contrary to the organisation's or the market's codes of practice.

2.

The adverse consequences of such a breach.

$375bn in conduct fines

"Conduct risk is now systemic in scale.

In the past five years, banks globally have paid some $375bn in conduct fines, and misconduct has damaged trust in financial services.

Identifying malpractice techniques is the essential first step to forestalling them, in particular if there is a limited core group of identifiable practices."

The Treasurer magazine, September/October 2017, p37 - Gerry Harvey, chief executive of the FICC Markets Standards Board (FMSB).

See also

• ACT Ethical Code
• Code of conduct
• Code of practice
• Conduct
• Corporate governance
• Financial Conduct Authority
• Fixed Income, Currencies and Commodities Markets Standards Board (FMSB)
• Front-running
• Layering
• Market corners
• Ramping
• Risk management
• Spoofing
• Squeeze
• Wash trading