From silos to synthesis: implementing business conduct risk data across the enterprise

For today’s financial institutions, reputational and business conduct risks are no longer peripheral – they shape strategy, operations, and client relationships. This shift is driving the move from fragmented monitoring to integrated, enterprise-wide systems that deliver risk data where it matters most.

Within these systems, business conduct data is embedded in internal dashboards, transaction execution tools, portfolio management systems, supplier management, and client relationship management platforms. These consolidated business intelligence hubs use a “single source of truth” approach to data architecture and enable transparency and insights across various domains, including Counterparty Risk Management, Transactional Risk Management, Stewardship and Engagement, Asset Management, and Client Advisory and Reporting.

In this report, we share early considerations for enterprise-wide management of business conduct data, drawing on practical insights from financial institutions already embedding RepRisk across their organization. It highlights key challenges and solutions for sourcing and integrating reputational risk data, along with the efficiency gains and cost savings of taking a 360-degree approach to business conduct risk.

# I. Why business conduct data matters for financial institutions

Investor strategies, regulatory obligations, and societal expectations are driving the growing influence of business conduct risk on financial market players’ activities.  The risk spans multiple facets, from an organization’s own operations to the activities and impacts of its clients and investee companies. With data and analytics reshaping organizations over recent decades, it comes as no surprise that business conduct data has become critical for financial institutions. 

Business conduct data underpins key areas such as:

• Enterprise risk management – Risk incidents, such as environmental failures or labor disputes, create financial, reputational, and compliance risks to companies. They also harm the communities and environments in which these companies operate, which can translate into financial losses and reputational damage. Integrating business conduct data into risk management processes across the organization, especially among frontline staff within the Three Lines of Defense Model, can aid in identifying, monitoring, and mitigating potential risks. This approach also assists in balancing risk and reward within financial institutions’ own operations, as well as when evaluating clients, transactions, suppliers, vendors, investments, insurance, and complementary services, ultimately strengthening operational resilience.
• Investment decision-making – Business conduct data provides investors with insights into the sustainability practices of companies and alignment with their objectives and values. Risk mitigation strategies can be implemented across all asset classes to limit downside reputational risk, generate signals for alpha, and create new financial products aligned with responsible business goals. These data sources support stewardship and engagement activities, and allow transparent reporting on risks and opportunities to clients.
• Regulatory compliance and reporting – Over the past decade, financial institutions have faced a sharp rise in regulations and voluntary frameworks aimed at improving transparency, accountability, and sustainable business practices. This trend is expected to continue, with further developments in regulations, industry standards, and reporting requirements.
• Stakeholder considerations – Financial institutions increasingly position themselves as enablers of sustainable business solutions, innovations, and product developments. Expectations from various stakeholders – including civil society groups, employees, shareholders, and investors – are high, and commitments closely scrutinized. Integrating business conduct data into strategy and decision-making helps strengthen stakeholder engagement.