Book contents
- Reviews
- Business Model Innovation
- Business Model Innovation
- Copyright page
- Contents
- Figures
- Tables
- Preface
- Acknowledgements
- 1 The Imperative for Business Model Innovation
- 2 Business Models and Creating Markets
- 3 Organisational Structure and Leadership
- 4 Digital Technologies and Transformation
- 5 Digital Platforms and Ecosystems
- 6 Small- and Medium-Sized Enterprises and Start-Up Business Models
- 7 Sustainability and Business Models
- 8 Business Models for Socio-economic Development
- 9 Conduct Risk and Business Models
- 10 Conclusion
- Index
- References
9 - Conduct Risk and Business Models
Published online by Cambridge University Press: 02 May 2024
Book contents
- Reviews
- Business Model Innovation
- Business Model Innovation
- Copyright page
- Contents
- Figures
- Tables
- Preface
- Acknowledgements
- 1 The Imperative for Business Model Innovation
- 2 Business Models and Creating Markets
- 3 Organisational Structure and Leadership
- 4 Digital Technologies and Transformation
- 5 Digital Platforms and Ecosystems
- 6 Small- and Medium-Sized Enterprises and Start-Up Business Models
- 7 Sustainability and Business Models
- 8 Business Models for Socio-economic Development
- 9 Conduct Risk and Business Models
- 10 Conclusion
- Index
- References
Summary
What are the principles of designing business models to ensure fair customer and market outcomes? This chapter explores how the global financial crisis highlighted the need to design business models in financial institutions that are profitable while ensuring fair customer outcomes and the integrity of markets. It introduces the concept of conduct risk and its relevance for sectors more generally beyond financial services. The principles of designing business models to manage conduct risk, and the implications, are discussed.
- Type
- Chapter
- Information
- Business Model InnovationA Blueprint for Strategic Change, pp. 229 - 248Publisher: Cambridge University PressPrint publication year: 2024
References
Adrian, T. and Shin, H. S. (2010). Liquidity and Leverage. Journal of Financial Intermediation 19: 418–437.CrossRefGoogle Scholar
Akerlof, G. A. (1970). The Market for “Lemons”: Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics 84(3): 488–500.CrossRefGoogle Scholar
Baines, T. and Lightfoot, H. (2013). Made to Serve: How Manufacturers can Compete through Servitization and Product Service Systems. Chichester, UK: John Wiley & Sons.Google Scholar
Barker, J. (1993). Tightening the Iron Cage: Concertive Controls in Self-Managing Teams. Administrative Science Quarterly 38(3): 408–437.CrossRefGoogle Scholar
Bernanke, B. S., Geithner, T. F., and Paulson, H. M. (2019). Firefighting: The Financial Crisis and Its Lessons. New York: Penguin Random House.Google Scholar
Cassidy, J. (2010). What Good Is Wall Street? Much of What Investment Bankers Do Is Socially Worthless. The New Yorker.Google Scholar
Davidson, J. (2017). Culture and Conduct – Extending the Accountability Regime. Speech delivered at City and Financial Summit, London, 20 September 2017.Google Scholar
Duguid, Andrew. (2014). On the Brink: How a Crisis Transformed Lloyd’s of London. Basingstoke, UK: Palgrave Macmillan.CrossRefGoogle Scholar
FCA Handbook. (2021). SYSC 24 Senior managers and certification regime: Allocation of prescribed responsibilities.Google Scholar
Financial Crisis Inquiry Commission (FCIC) Report. (2011). Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States, Official Government Edition.Google Scholar
Financial Times. (2012). FSA Slams “Aggressive” Selling of Retail Investments, 13 March.Google Scholar
HBR Case. (2014). Goldman Sachs: Anchoring Standards After the Financial Crisis, Case Number: N9-514-020.Google Scholar
Lev, B. (1988). Toward a Theory of Equitable and Efficient Accounting Policy. The Accounting Review 63(1): 1–22.Google Scholar
Louis, J. and Zinkin, R. (2019). Better Governance across the Board: Creating Value through Reputation, People, and Processes. Walter De Gruyter, Boston, USA.Google Scholar
Martinez, V., Neely, A. Velu, C., Leinster-Evans, S., and Bisessar, D. (2017) Exploring the Journey to Services. International Journal of Production Economics 192: 66–80.CrossRefGoogle Scholar
Meeks, G. and Velu, C. (2018). Ten Years from the Crash: Time to Row Back on Financial Regulation and Compliance? LSE Business Review.Google Scholar
Mintz, Robert. A. (2008). Business Failure Are Not a Crime. Wall Street Journal, 26 June 2008.Google Scholar
Pauly, M. V. (1968). The Economics of Moral Hazard: Comment. The American Economic Review 58(3): 531–537.Google Scholar
Salz, A. and Collins, R. (2013). An Independent Review of Barclay’s Business Practices. Salz Review, Barclays PLC, London, UK.Google Scholar
Smith, D. J. (2013). Power-by-the-Hour: The Role of Technology in Reshaping Business Strategy at Rolls-Royce. Technology Analysis & Strategic Management 25(8): 987–1007.CrossRefGoogle Scholar
The Financial Crisis Inquiry Report – FCIC Report. (2011). Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States Washington, DC: Financial Crisis Inquiry Commission.Google Scholar
The Guardian. (2021). KPMG Fined £13m over Sale of Silentnight to Private Equity Firm, 6 August.Google Scholar
Wigand, R. T., Steinfield, C. W., and Markus, M. (2005). Information Technology Standards Choices and Industry Structure Outcomes: The Case of the United States Home Mortgage Industry. Journal of Management Information Systems 22(2): 165–191.CrossRefGoogle Scholar