Financial services AI
Conduct risk
Risk that a firm's behaviour produces poor customer or market outcomes.
Definition
Conduct risk covers product design, advice, communications, sales, servicing, complaints and market behaviour that may cause harm.
Why it matters
Generative systems can scale unsuitable, misleading or inconsistent interactions, making outcome-based evals essential.
Related concepts
- Consumer Duty
The UK expectation that firms deliver good outcomes for retail customers.
- Golden set
A curated set of representative inputs and trusted expected outcomes.
- Critical-error rate
The share of cases containing a failure with severe consequences.