# Conduct Risk

> Identify and manage conduct risk — the risk of harm to customers or markets from inappropriate behavior, culture, or business design. Use when assessing sales practices, incentives, product governance, or culture-driven compliance risk.

- Skill: `itsual/conduct-risk` (Agent Skill)
- Install (CLI): `npx skillmds@latest add itsual/conduct-risk`
- Raw SKILL.md: https://api.skillmd.com/api/skills/itsual/conduct-risk/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: itsual (https://skillmd.com/u/itsual)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/itsual/conduct-risk

---


# Conduct Risk

## Overview

Conduct risk focuses on how the firm’s behavior affects customer and market outcomes. It sits at the intersection of culture, incentives, product design, and compliance.

## When to Use

- Product and sales practice reviews
- Incentive scheme assessments
- Culture and conduct risk assessments
- Remediation after conduct failures

## Core Practices

- Map where customer harm could occur in the value chain
- Review incentives for unintended pressure
- Monitor leading indicators (complaints, cancelations, outlier sales)
- Embed conduct considerations in product approval
- Escalate systemic conduct issues to senior governance
- Align remediation with root causes, not only individual blame

## Principles

- Bad outcomes can follow “technically allowed” behavior
- Culture and incentives often explain conduct better than policy gaps alone
- Detect patterns early through MI, not only after scandals
- Senior accountability is part of the control environment

## Verification

- [ ] Conduct risk scenarios are identified for key products
- [ ] Incentive reviews occur on a defined cadence
- [ ] MI and complaints feed conduct governance