Conduct Risk & MAR
How do you manage conduct risk and MAR in a small firm?
How do you manage Conduct Risk and MAR in a small firm?
Following the 2016 Market Abuse Regulations (MAR), the Conduct Rules to be implemented under SM&CR from 2017, and MiFID in early 2018, one of the key focuses of the regulator is how the business identifies and manages their MAR and conduct risk.
An effective MAR and conduct risk management framework can be difficult to implement in a small firm that may not have the budget for the latest sophisticated technology to detect potential conduct risk or market abuse, or a large risk and compliance department to provide oversight of all aspects of the businesses’ operations.
So how does a small firm ensure they are managing MAR and their conduct risk effectively, and demonstrate their compliance to the regulations?
A smaller firm needs a practical (not theoretical) framework that is:
- Economical and quick to implement
- Fits the size, structure and complexity of their operations
- Easy to embed within the existing daily processes
- Has the tools to enable management to fully understand the risks and better control their risks.
Conduct Risk & MAR policies
1RS can create the right conduct risk policy for your organisation, which can be used to support and align to the conduct risk training given to your staff.
Risk & Control Assessments
Identification of MAR and conduct risks and the impact and likelihood of these risks within your processes, enable you to manage conduct risk. Once you have identified and assessed all risks, you need to have the appropriate mitigating controls.
KRI & Risk Reporting
An effective MAR and conduct risk framework has specific Key Risk Indicators (KRI’s) reported on a transactional, daily, weekly, monthly basis (as applicable).
To discuss how 1RS can help you manage MAR and Conduct Risk in your organisation