Conduct risk can be described as the risk that our conduct poses to achieving fair outcomes for consumers or to the sound, stable, resilient and transparent operation of the financial markets. Put another way, conduct risk is the risk that the way we carry out our business causes poor outcomes for our customers or the markets.
To mitigate against conduct risk, we have taken steps to embed conduct considerations in our governance structure and strategies.
Naturally, the way we sell our products and provide customer service could produce poor outcomes for consumers if not properly managed, and therefore TCF is also enveloped within the concept of conduct risk. However, conduct risk is broader than just TCF: we consider our conduct risk profile in the way we set our strategy for the business, in the fundamental workings of our business model and in our product design. In this way we aim to identify and mitigate against risk before consumers suffer adverse outcomes.