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Conduct Risk

The financial services sector is under constant market and regulatory pressure to deliver fair, transparent and timely outcomes. Organisations that fail to bring conduct risk in line face regulatory action, fines and reputational damage, which can harm a business for years beyond the event.

Correspondingly, conduct risk continues to command a significant amount of Board and senior executive-level attention in Australia.  In addition to back book issues, the impact of recent digitisation and changes adopted at pace throughout the pandemic could create potential emerging risks for financial organisations. 

Now more than ever, it is vital that firms ensure that they are appropriately prepared to meet the expectations of both the regulators, their shareholders and their customers.


Remediation

Given the near constant flow of conduct issues which require investigation and rectification, many larger financial firms adopt remediation as a permanent fixture of their organisation. Naturally for less experienced and smaller scale operators, a more reactive approach to remediation is more feasible with temporary operations (either run through the organisation or outsourced) being mobilised each time an issue arises.
 

Five design principles to foster successful remediation execution

We spoke to some of the leading players in the banking sector in Australia, Canada, Ireland, New Zealand, the UK and the US to investigate their approaches to conduct risk and customer remediation. Our research identified some leading approaches which the more proactive market participants are following and the definition of five design principles to foster successful remediation execution. 

Five design principles to foster successful remediation execution

How KPMG can help

KPMG offers a holistic remediation service with a customer centric approach. This encompasses prevention plays, multiple remediation delivery models and post-remediation root cause analysis and transformation.  

We work with many financial clients on a wide variety of regulatory and compliance challenges. We can work with you to create effective and implementable road maps for change.


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