Perspectives

Internal Audit and retail conduct risk

Getting the right outcome

This paper explores the key considerations for internal auditors when approaching conduct risk in their organisation.

Getting the right outcome

Internal audit departments in the financial services industry continue to operate against a backdrop of heightened regulatory scrutiny.

The FCA are looking for firms to fully embed conduct risk management, and putting customers at the heart of everything they do. In this article, we look at the role internal audit has to play in assessing conduct risk, the approaches they may take, and the key issues to be aware of.

In this article, we explore:

  • The current focus areas of the FCA with regards to conduct risk including strategy and culture.
  • The various considerations internal audit must make when tackling conduct risk. This may range from standalone reviews to an embedded and integrated approach, and also the internal competency requirements for internal audit.
  • Current key conduct risks within retail banking and how internal audit may approach them. For example digital banking, the challenges around disclosure, recent changes in lending regulation and the continued focus around sales.
Internal Audit and retail conduct risk
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