Banking Newsletter - October 2013

A review of key banking markets, culture change, BEPS, lean technology, conduct risk, stress testing and recovery planning, and behavioural economics.

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Banking Newsletter - October 2013

Regulatory governance and conduct risk 

A great deal of attention has recently turned to the consumer protection agenda and in particular the miss-selling of financial products. This major issue in the UK marketplace is shining a spotlight on conduct issues in banking and financial services.

Heightened regulatory scrutiny will mean that what is expected of firms today is far more than what has been required in the past. As a result, banks will need to fully understand the nature of conduct risk, where the potential dangers lie and what controls need to be in place.


We have developed a short video which explores conduct risk and miss-selling, as well as an area of growing attention for regulators, boards and senior management teams – risk culture.


Ian Pollari, KPMG Australia’s National Banking Sector Leader and Tim Howarth who leads KPMG’s Regulatory Governance and Organisation service line in KPMG's UK firm share their insights and observations on these topics. Prior to joining KPMG, Tim spent 8 years at the Financial Services Authority in the UK.


Areas covered in the video include:

Conduct Risk

  • Definition of conduct risk and examples from the UK marketplace.
  • Response from consumers and regulators to the systemic series of issues around misconduct in the industry.
  • How have UK firms responded?
  • Insights and observations on the Australian market.


Risk Culture

  • A response from organisations and regulators alike to address issues around misconduct focus on risk culture.
  • Observations on the UK marketplace and in particular how banks are addressing the issue of risk culture.
  • In Australia, there is a growing emphasis on the role of boards, particularly around establishing an appropriate risk appetite and setting the ‘right tone from the top’.
  • We provide some practical examples of how practices at board level and risk management are evolving around risk culture.

    Ian Pollari

    National Sector Leader, Banking

    +61 2 9335 8408

    Tim Howarth

    Partner, Financial Risk Management
    KPMG in the UK

    +44 20 73116640

    Mike Ritchie

    Partner in Charge, Financial Risk Management

    +61 2 9335 8251

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     In this issue


    Video: Conduct risk and risk culture in the Banking sector

    Video: Conduct risk and risk culture in the Banking sector
    In this update KPMG partners Ian Pollari and Ian Howarth define conduct risk and provide examples from the UK marketplace and discuss risk culture.