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CityLearning
Regulatory & conduct

Conduct Risk

Help staff recognise conduct risk in their day-to-day decisions and understand how poor conduct leads to customer harm and regulatory action.

Duration: ~20 min Accreditation: CPD accredited (CII) Last updated: May 2026 Reviewed by: Margaret Hassett
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What is conduct risk, and why does it matter?

Conduct risk is the risk that a firm’s behaviour, or an individual’s, leads to poor outcomes for customers or markets. It rarely stems from one bad decision; more often it builds through culture, incentives and small choices made under pressure. The harm can mean unsuitable products, unfair markets, remediation costs and regulatory action.

Who needs conduct risk training?

This training is relevant to all staff, because conduct risk grows from everyday behaviour rather than policy alone. It has particular value for customer-facing, product and control functions, where decisions most directly affect customer and market outcomes. Embedding awareness firm-wide helps staff recognise and challenge conduct risk early, before it becomes harm.

What does conduct risk training cover?

The course helps everyone see where conduct risk shows up in their own role. It defines conduct risk in practical terms, links it to the Consumer Duty and good customer outcomes, and helps learners recognise the behaviours and incentives that drive poor conduct, plus how to identify, manage and raise a conduct concern.

What does the FCA expect on conduct risk?

The FCA places conduct centrally in its supervisory expectations and looks closely at culture and incentives as root causes of conduct failings. The Consumer Duty raises the bar by requiring firms to deliver good outcomes for retail customers, going beyond simply avoiding obvious harm, which makes conduct risk management central to compliance.

What your team will learn

  • Define conduct risk and where it arises in everyday work
  • Link conduct to customer outcomes and the Consumer Duty
  • Recognise behaviours and incentives that drive poor conduct
  • Identify how to raise a conduct concern

What's included

  • ~20 min of focused, scenario-based learning
  • CPD accredited (CII)
  • Built-in quiz with a configurable pass mark
  • Reviewed and kept current with UK regulation
  • Time-stamped completion records for your audit trail

How it works

  1. Assign it in seconds

    Enrol a team, a role or your whole firm from the CityREPORTS dashboard, with automated reminders that chase completion for you.

  2. Your team completes it

    Learners work through the course at their own pace on any device, finishing with a short assessment that demonstrates understanding.

  3. Evidence it to the regulator

    Every completion is time-stamped and retained, so you can prove the right people did the right training at any moment.

Frequently asked questions

What does the FCA look for when assessing a firm's conduct risk framework?
The FCA examines whether culture, incentives and governance are aligned with good customer and market outcomes, looking beyond whether policies exist on paper. Supervisors look at whether leadership models the right behaviour, whether reward structures create perverse pressure, and whether staff can challenge poor decisions. Conduct risk training reinforces the day-to-day behaviours the FCA expects to find embedded.
How does conduct risk relate to the Consumer Duty?
The Consumer Duty raises the bar by requiring firms to deliver good outcomes for retail customers, going beyond simply avoiding obvious harm. Conduct risk is the lens for spotting where behaviours, incentives and decisions might undermine those outcomes, so managing conduct risk is central to meeting Consumer Duty obligations in practice.
Who needs conduct risk training?
All staff benefit, because conduct risk grows from everyday behaviour rather than policy alone. It has particular relevance for customer-facing, product and control functions, where decisions most directly affect customer and market outcomes. Embedding awareness firm-wide helps staff recognise and challenge conduct risk early, before it becomes harm.
What drives poor conduct in financial services?
Poor conduct is often driven by culture, incentives and pressure rather than deliberate wrongdoing. Reward structures that prize short-term results, weak challenge, and ambiguity about what good looks like can all push everyday decisions in the wrong direction. The FCA looks closely at culture and incentives as root causes of conduct failings.