1LoD’s 2019 survey reveals that conduct risk is being taken more seriously. Regulators have made it clear that they will target misconduct and score firms on culture.
According to this survey, 41% of firms ranked global roll out of conduct risk controls as high priority and 82% of firms said conduct risk is now given the same priority as financial risk inside businesses. There’s also a focus on having a standardised approach to discussing and measuring non-financial risk. Firms are also attempting to show regulators they are speaking the same language by standardising measurements of risk.
As this important research from 1LoD makes clear, a regulatory focus on culture and conduct related risk has led to significant changes in the way the financial sector is grappling with non-financial risks more broadly. We expect to see this trend continue and to build further steam, creating greater demand for innovative regtech solutions.