
Conduct Risk: A New & Emerging Risk For Energy Businesses
What is Conduct Risk Conduct risk refers to the risk that a company's employees, agents, or contractors may engage in behaviour that is inappropriate, unethical, or illegal, and which could lead to harm or damage to the company or its stakeholders. Although there is no official definition, it is usually associated with issues such as how consumers are handled, employee compensation, and how businesses handle conflicts of interest. The Australian Securities & Investment Commission (ASIC) states conduct risk is a risk of improper, unethical, or unlawful activity that may be brought on by intentional acts or unintentional deficiencies in an entity's procedures, framework, or training programs. Conduct risk has become an increasingly important consideration for companies in Australia, as regulatory agencies have become more focused on ensuring that companies operate…