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Insights from RepRisk's Business Conduct Risk Intelligence Report 2026

The newly released Business Conduct Risk Intelligence Report 2026, compiled by RepRisk in collaboration with renowned firm Oxford Economics, paints a concerning picture for the banking and financial services sector. In an intricate landscape marked by rapid advancements in technology and pressing environmental issues, C-suite executives from more than 500 global financial institutions have voiced alarm over the growing complexity and frequency of business conduct risk incidents.

Key Findings

Research indicates that a staggering 81% of executives believe business conduct risk data will become increasingly critical to their organization's strategy in the next three years as they expect the emergence of more complex risks. Notably, the report highlights that the average number of significant business conduct risk incidents surged by 55% from 2023 to 2025, marking a pivotal shift in how executives view these circumstances—from mere compliance issues to serious threats to financial stability.

The financial repercussions are considerable; institutions are incurring multi-million-dollar losses due to various risks, including client losses, regulatory fines, and damage to their reputations. As the financial landscape becomes more volatile due to geopolitical tensions and advancing technologies like artificial intelligence (AI), leaders acknowledge the necessity of comprehensive and reliable business conduct risk data.

AI-Driven Risks on the Rise

Interestingly, while only 16% of executives previously identified AI-related conduct risks as a primary concern, this figure is projected to leap to 56% in the coming three years. This marked increase underscores the urgency for institutions to adapt their risk strategies to include these emerging challenges. Executives express a clear preference for hybrid models that combine both human and AI insights for risk evaluation, significantly favoring it over purely AI-driven methods.

This preference reflects broader concerns regarding trust in data accuracy. 67% of executives expressed confidence in hybrid models, viewing them as essential for making informed investment and risk management decisions, while only 35% felt similarly about AI-only platforms. This sentiment highlights the growing skepticism around AI's limitations without human oversight.

The Importance of Proactive Investment

Investment trends reveal that 25% of organizations ramped up their spending on conduct risk data by over 20% in the past year alone. Many of these investments, however, were spurred reactively post-incident, with 58% of firms increasing their outlay only in the aftermath of significant setbacks. Executives insist that treating business conduct risk data as a strategic asset, rather than a compliance obligation, is crucial for businesses aiming to maintain a competitive edge.

The Shift in Priorities

The report also documents a noticeable shift in the prioritization of risks. Conduct risks related to AI have risen to prominence, whereas previously highlighted issues, such as corruption and modern slavery, have diminished in relevance. Data privacy and cybersecurity threats remain major concerns, as do potential miscommunications and challenges related to misleading claims regarding corporate responsibility (greenwashing).

Conclusion

Philipp Aeby, the CEO of RepRisk, articulates the growing need for robust, trustworthy data systems in these uncertain times. He emphasizes that banks and asset managers must rely on consistent, transparent methodologies to be capable of defending their decisions at the board level.

In essence, the adaptability of financial institutions in navigating this evolving landscape of business conduct risks may very well determine their future viability and success. As the report concludes, firms that strategically leverage business conduct risk data will emerge with not just resilience, but with an enhanced reputation and integrity in the marketplace.