Below are the details of the operational risks covered within this selected sub-risk category:
Intentionally manipulating markets
Employees may collude with other employees or external market participants to intentionally manipulate one or more segment of markets where the firm operates. Examples of market manipulation may include: -
Intentionally conducting business activities outside the scope of firm's business license
Employees may intentionally conduct business activities outside the scope of firm's business license. Examples of such activities may include: -
Intentionally conducting business activities in geographies covered by international sanctions or embargoes
Employees may intentionally conduct business activities in geographies covered by international sanctions or embargoes. Examples of such activities may include: -
Intentionally conducting business activities with individuals, firms or industries covered by international sanctions or embargoes
Employees may intentionally conduct business activities with individuals, firms or industries covered by international sanctions or embargoes. Examples of such activities may include: -
Intentionally providing improper advice to customers
Employees may intentionally provide improper advice to customers, where such advice may result in financial harm for customers. Examples of such advice may include: -
Intentionally mis-selling products or services to customers
Employees may intentionally mis-sell products or services to customers, where such mis-selling may result in financial harm for customers. Examples of mis-selling may include: -
Intentionally selling products or services, banned by laws or regulation, to customers
Employees may intentionally sell products or services to customers, where such products or services are banned by laws or regulations. Examples of such selling may include: -
Intentionally fail to deliver products or services to customers
Employees may intentionally participate in activities which result in failure to deliver products or services to customers. Examples of such failure may include: -
Changes to structure of products or services, where such changes may be considered unfair by customers or regulators
Firm may change the structure or terms of customer accounts, where such changes may be considered unfair by customers or regulators. Examples of such changes may include: -
Termination of existing business relationship with customers, where such termination may be considered unfair by customers or regulators
Firm may terminate existing business relationship with customers, where such termination may be considered unfair by customers or regulators. Examples of such termination may include: -
Intentionally discriminate against customers
Firm may intentionally discriminate against customers based on their gender, religion, country of origin, occupation or publicly held views. Examples of such discrimination may include: -
Intentionally harassing customers or prospects
Firm may intentionally adopt business practices resulting in harassment of customers or prospects. Such harassment practices may include: -
Intentionally defrauding customers through products or services
Firm may intentionally launch products or services with intention of defrauding customers. Examples of such products or services may include: -
Intentionally providing inaccurate information to market participants
Firm may intentionally provide inaccurate information to market participants such as credit rating agencies, stock exchanges, industry association. Such inaccurate information may be provided to: -