Managing conduct risk for financial services

Amid increased regulatory focus on sales practices and investigations, EY teams help organizations effectively put data to use and create efficient workflows for identifying, monitoring and mitigating risks.

What EY can do for you

Financial services organizations are facing greater scrutiny on conduct risk around the world. This means that an organization that does not uphold its stated values may, as a result, take actions that adversely impact the interests of its customers and other stakeholders, or the integrity of markets.

If conduct risk is not actively monitored and violations occur, a corporation can face reputational harm, high penalties from regulators, litigation risk and personal liability, or competitive damage.

EY teams assist companies in developing and strengthening their conduct risk management programs via a data-driven approach. The scope of EY services includes:

  • Responding to regulatory enforcement actions and civil litigation arising out of corporate conduct
  • Supporting the preservation, collection, analysis and production of digital evidence
  • Investigating root cause
  • Identifying affected consumers, quantifying financial impact and assisting with remediation
  • Reporting findings and providing fact or expert testimony

For financial institutions all over the world, EY professionals have been tasked with investigating market misconduct and improper sales services, as well as strengthening banker supervision programs and compliance training. The EY framework for addressing conduct risk management is founded on data and workflow design, to drive continuous improvement in a way that makes sense for specific needs:

Data-driven approach

Leveraging a robust library of fraud detection algorithms that have been widely used and tested in real-world scenarios, EY teams enrich risk alerts with contextual data that offers insight into behavioral and relationship patterns, and helps guide the - conduct risk management life cycle. EY teams work with key stakeholders to identify the right data sources, aggregating and analyzing them to gain a holistic view of potential risk behaviors. EY teams use machine-learning models that are continuously improved to reduce false positives and apply robotic process automation technologies to replace routine and error-prone human-intensive tasks.

Integrated and efficient workflow design

By applying machine learning and automation technologies in workflow designs, EY teams enhance case management tools with interactive dashboards where compliance professionals can gain a consolidated risk view and quickly determine escalation procedures. EY teams focus on providing compliance executives with a consolidated view of risk alerts displayed along a common time dimension, overlaid with contextual market data and news feed, when needed. EY professionals work closely with relevant stakeholders to develop integrated workflows that bring together all key activities involved in managing conduct risk onto a single platform, from detection, to investigation, tracking, analysis, escalation and remediation.

Effective technology

Leveraging EY Virtual as the host platform, EY teams offer the ability to consolidate a wide range of data sources and to generate rich contextual data that is crucial to guide the life cycle of conduct risk management. EY Virtual can be deployed on premises or via cloud.

Services with multiple deployment options

From prevention to monitoring, investigation and mitigation, EY multidisciplinary teams work together to help organizations build a holistic conduct risk management strategy. Whether the nature of work is advisory or implementation, EY teams provide a managed services delivery model so clients can benefit from the consistent availability of EY professionals and the organizational knowledge they accumulate over time.

Investigative bench strength

EY professionals are experienced in conducting global, complex investigations and working with outside counsel and regulators. They effectively team up with sector-focused professionals, forensic technologists and data scientists to collectively perform investigations, impact analyses and transaction testing on a wide variety of compliance and litigation matters.

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