Poor culture and ineffective management of employee conduct has contributed to numerous business failures and has been identified as a root cause of a number of serious issues.
In response, key financial services stakeholders, including boards and regulators with responsibility for oversight of the control environment, have heightened their focus on the appropriateness of organizational culture and the effectiveness of conduct risk management.
One core role of internal audit is to assess the adequacy and effectiveness of the internal control environment. The purpose of this guidance is to assist internal auditors in understanding and evaluating the management of conduct risk.