25 years: Wealth and risk management specialist
In the next video, Faisal dives deeper into the specific operational risks that are particularly relevant to wealth management firms and their clients.
In the next video, Faisal dives deeper into the specific operational risks that are particularly relevant to wealth management firms and their clients.
7 mins 42 secs
Operational risk is by far the biggest risk that wealth management firms and their clients face, purely due to all of the different methods it can impact the business. Risks that are included within operational risk include the likes of fraud, business continuity and conduct risk to name a few. Fraud can be internal or external, typically with the aim of misappropriating client funds. If your place of work becomes uninhabitable, business continuity is essential. And given the general unsophisticated nature of wealth management clients, ensuring your staff follow conduct rules is essential if you want to avoid the possibility of large fines.
Key learning objectives:
Outline how fraud, business continuity and conduct risk impact wealth management firms
Understand the impact of not monitoring and preventing these risks effectively