Conduct Risk

Conduct risk refers to the possibility that a business or organization behaves in ways that are unethical, unfair, or irresponsible, potentially harming customers, investors, or the market’s trust. It covers actions like misleading advice, poor customer service, or breaking laws for immediate gain. Managing conduct risk involves ensuring the organization operates with integrity, adheres to regulations, and treats stakeholders fairly. Failing to do so can lead to reputational damage, legal penalties, and financial loss, making it a crucial aspect of responsible business management.