Conduct Risk training suite
Conduct Risk Suite
Geography Covered: Global | Duration: 30 minutes/module
The eight courses in the Conduct Risk Suite familiarize employees with the various areas of a firm’s culture and operations that present a conduct risk — the risk that customers and clients will suffer detriment as a result of the firm’s inappropriate business culture or inappropriate judgment in the execution of its business activities — and identify ways to mitigate this risk. Combatting conduct risk requires encouraging ethical behavior from all individuals associated with the firm and at all stages of the firm’s business operations, including the following areas covered in the Conduct Risk Suite: customer outcomes, conflicts of interest, culture and tone from the top, recordkeeping, hiring and onboarding, whistleblowing and personal liability concerns.
In the wake of the financial crisis, regulators have targeted the behavioral aspects of firms and their business activities. The crisis revealed that a “check-the-box” compliance mind-set is not sufficient. In addition to following the rules, firms must also improve the intangible factors that affect risk in order to prevent future problems. To put it another way, firm culture and actions need to reflect a “should we” attitude rather than simply checking whether business decisions satisfy the “can we” question in order to minimize conduct risk.
Conduct risk is of growing concern to regulators and firms around the world; for example, the UK’s Financial Conduct Authority (FCA) has placed heavy emphasis on the need for firms to address conduct risk and offered guidance on how to do so. Despite its importance, conduct risk is hard to define, and there is no single definition that works for every firm. Essentially, conduct risk is the risk that a firm’s inappropriate business culture or inappropriate judgment in the execution of its business activities will cause detriment to its customers and clients.
Firms need to assess their vulnerability to conduct risk and proactively identify ways to respond to ethical dilemmas. By doing so, firms may prevent or mitigate the negative consequences of conduct risk failures, which include financial, legal and reputational damage to the firm; poor outcomes for customers and clients; and harm to the financial system as a whole. The Conduct Risk Suite of courses helps employees understand their personal responsibility to follow the firm’s policies, act ethically and make appropriate choices when carrying out the firm’s business activities.
The available versions for this course include:
Content for the Thomson Reuters MicroLearning Suite is powered by world-leading regulatory intelligence, which tracks over 900 regulators and exchanges globally.
Intended as a supplemental solution to our 800+ customizable compliance training course library, this learning suite changes the approach to online Conduct Risk Suite compliance training, from a ‘once-a-year’ event to a steady flow of interesting and informative trainings that reinforce both the ‘tone from the top’ and an organization’s core values.
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The Code of Conduct training course provides basic training on the most important topics most commonly found in nearly every company's Code of Conduct, including conflicts of interest and information security.