Last week I was privileged to perform the keynote session at the American Bankers Association Compliance Conference in Orlando, Florida. Amongst the sessions provided to the 1800 attendees, a common theme emerged. Although these compliance officers were highly familiar with every nuance of the most complex banking regulations, the monster in the room was a newer problem: Conduct Risk, or, as most corporate compliance officers would call it, ethics and culture problems.
An article published by Banking Technology notes the global interest in this issue:
“This interest has not been confined to UK regulators. The OECD has published a report on conduct risk principles, which it expects all members to integrate into their regulatory approach, and the HKMA has issued a paper on the topic, echoing the language and approach of the FCA. A nascent international consensus seems to be forming on the importance of ‘conduct risk’ as a concept in the emerging post-crisis regulatory landscape.”
The article goes on to note that there is one major problem: nobody quite agrees on what conduct risk means -Read More