Business probity risk
Business probity risk concerns the possibility that dishonest, unfair or otherwise improper conduct undermines the integrity of business dealings. It can arise in procurement, use of confidential information, conflicts of interest and allocation of benefits. It overlaps with legal, fraud and reputational risks but also concerns standards of fair and trustworthy conduct.
Worked example
A buyer leaks rival bids to a favoured supplier. Even if the immediate purchase price is low, the conduct threatens fair competition, trust and the organisation’s reputation.
Common mistake
Treating probity as a financial ratio or assuming that conduct is acceptable whenever a specific offence has not been established.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBL | Supporting | September 2026–June 2027 |