Regulators are placing increasing emphasis on the management of
conduct risk within financial services firms. Central to this is
the right management information (MI). The importance of MI is also
set to increase in the UK under the Senior Managers Regime (SMR)
and Senior Insurance Managers Regime (SIMR), where strong conduct
risk MI will help Senior Managers to demonstrate that they have
taken reasonable steps to understand conduct risks and that they
have put in place appropriate controls.
While both retail and wholesale firms across the financial
services sector have made progress in embedding conduct risk within
their risk management frameworks, and have sought to improve
associated MI, there are still several areas where firms can
continue to make improvements. Recognising that firms cannot afford
to delay in this work and to assist them as they undertake it, we
set out 10 principles of strong conduct risk MI in
our new paper, launched today.
