As a key theme for the FCA, making sure your conduct risk arrangements are fit for purpose is vital. We advise firms on every aspect of conduct risk and culture, and have developed a conduct–risk assessment tool to provide a practical way of to stay on top of your conduct risk framework.
Helping you with conduct–risk assessment
Our conduct risk assessments are a straight-forward way of reviewing the effectiveness of your conduct–risk framework and the tools we use help provide a shared understanding and clear action points. We have identified the most important areas to be considered when assessing conduct risk and created a set of scenarios to challenge your current controls. The scenarios give you a chance to review how you are doing and if there are any areas that need further work. If further work is needed then we can support you by looking at your progress in more detail and providing you with a plan of action.
How the conduct risk assessment works
Our assessment will focus on both inherent and residual risks in relation to various business functions. We measure likelihood as well as impact along with the existing controls your firm has in place. This scoring is completed by Bovill and key members of your firm. We typically facilitate the discussion, act as subject matter expert, and record the outcome.
Based on these conversations, Bovill will recommend actions where necessary, detailing any additional controls that are needed to further reduce risk along with detailing the potential impact on the firm should that risk crystallize.
Mitigating conduct risk with a clear action plan
At the end of the process, you will receive a completed assessment which can be used as a starting point for a risk register along with a prioritised action plan that will help you manage and mitigate conduct–risk.