Читать книгу Non-financial Risk Management in the Financial Industry - Группа авторов - Страница 36

Employee conduct risk can be defined as the risk of harm to the organisation by employees falling prey to conflicts of interests or violations of the code of conduct. The European Union defines conflict of interest as a situation

“where the ‘impartial and objective exercise of the functions of a financial actor or other person’ involved in budget implementation ‘is compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other direct or indirect personal interest.’”[57]

According to the US Securities and Exchange Commission (SEC), organisations need to integrate conflict of interest risk into their three lines of defence structure and should consider conflicts of interest throughout their key business processes, including strategic planning, capital allocation, performance monitoring as well as evaluation of business units and individual business leaders.[58]

For further details on conduct risk, we refer to chapter 13.