Study · Consulting firm
Conduct Risk: trends and challenges for the financial sector
Conduct risk requires institutions to put themselves in their customers’ place and protect their interests, even against their own short-term interests.
- Organization
- Management Solutions (MS)
- Document date
- 2016
- Type
- Study
- Language
- Spanish
- Scope
- International
- Length
- 40 pages
What it contains
The study, published by the consulting firm Management Solutions (with rights reserved in 2016), argues that institutions have made great progress in controlling traditional risks, losses and the balance sheet, but that conduct risk drives a paradigm shift: it requires putting oneself in the place of customers and other parties involved and protecting their balance sheet, in some cases against the institution’s own short-term interests. Banking structures, technology, organization and governance were not built for that logic, which is why the management framework must be a key element of the executive agenda.
Its context is the scandals that led regulators to examine the root causes of misconduct in banks: the document includes data on fines imposed on institutions operating in the United Kingdom since 2007 and two practical cases, the manipulation of LIBOR and the mis-selling of payment protection insurance. It also notes that regulatory interest is not uniform across the world and that technological change moves customer relationships from reactive to proactive.
The structure is: executive summary, introduction, components of the conduct risk management framework (risk appetite, control model, risk and control self-assessment, risk metrics), a model for identification and measurement, bibliography and glossary. It also explores the use of Big Data and advanced data analytics to detect, in a forward-looking way, conduct risks that are not obvious.
Why it matters for risk management
It is background reading for those who design customer treatment, product sales and risk culture policies. It is a 2016 study focused on the experience of other markets: it serves as a conceptual framework, not as a description of current Dominican regulation.
No official page for this study was found; the copy that the Club originally published on this site is linked. The year is taken from the document’s own copyright notice.
Summary prepared by the Dominican Republic Risk Management Club from a reading of the original document, with the source verified on 7 October 2026. It does not replace reading the official text and is not advice.
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