Unit 3 / Section 1 - For a Company Flashcards
What are characteristics of a silo approaches to Conduct Risk Management?
They are reactive, and their functions segregated; each silo has its own tools and applications to assist with specific management and reporting requirements.
What are the 4 main powers of regulators?
1) To authorise firms and individuals who hold senior positions or positions of significant influence
2) To set the standards which firms must follow (most notably in their regulatory handbooks or sourcebooks, or in their fundamental rules for business)
3) To supervise the firms they regulate, which can be either direct and close (visits made to firms) or more distant (completion of regulatory returns)
4) To take enforcement action against firms that breach the required standards
What are key responsibilities of a conduct risk manager?
1) Identifying and assessing conduct risks to ensure they are well managed within the firm’s risk appetite
2) Providing expert input into projects and in risk reviews as part of broader firm-wide objectives
3) Being comfortable challenging and influencing stakeholders up to board level
4) Analysing and evaluating a range of meaningful management information to produce insightful analysis, recommendations and advice to influence business decisions
5) Implementing processes to deliver the firm’s overall conduct risk policy - and delivering oversight and assurance within business areas, agreeing remediation plans as necessary
6) Acting as a source of professional expertise to mitigate the potential for risk - and ensuring systems and processes are fit for purpose
