Managing conduct risk during a pandemic

Victoria Stubbs
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Victoria Stubbs: Chief Risk Officer, The Cambridge Building Society, UK

Journal of Financial Compliance, 2021, vol. 4, issue 3, 202-209

Abstract: The coronavirus pandemic (COVID-19) has drastically altered the operating model of almost all financial services firms, and staff are operating through a period of heightened stress. This paper discusses how firms need to ensure they respond rapidly to the changes to the external environment. The paper analyses how, while firms will need to update the risk-management basics of risk and control registers and second line of defence monitoring, the key driver to ensuring that conduct risk is well managed will be culture. It discusses how the Board will play a crucial role in ensuring that the desired customer outcomes are met as well as supporting all staff through this period. Regulators will be challenging firms as to how they have met the expected standards and remained within risk appetite. Culture will be a key factor in ensuring that firms continue to look after the interests of their customers.

Keywords: conduct risk; pandemic; culture; risk management; board oversight; COVID-19 (search for similar items in EconPapers)
JEL-codes: E5 G2 K2 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jfc000:y:2021:v:4:i:3:p:202-209

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