Growth Without Guesswork: Why Risk Management Is Key To Scaling Smart

Bankers don’t always see risk management as a growth enabler—but maybe it’s time they should. As ProSight board member Mark Midkiff, a former bank chief risk officer, writes in The RMA Journal, a carefully designed growth risk management strategy can actually unlock opportunities for banks ready to expand in today’s changing regulatory and tech landscape. 

The key is integration. Growth, risk, and strategy must work in tandem. That means starting with the right foundation: soundness first, then profitability, then targeted expansion. Any growth initiative that compromises stability is a nonstarter—and profitability must remain a constant focus as banks scale. 

Midkiff argues for a more connected approach to enterprise risk management. Instead of treating credit, liquidity, operational, and compliance risks in silos, banks should link them through ERM so that risk oversight supports growth instead of hindering it. “A strong ERM framework not only mitigates risk, but it also enables leadership to pursue both organic and inorganic growth opportunities with confidence,” he writes. 

But it’s not just about internal systems—it’s also about mindset. “An overly cautious approach to growth can be just as detrimental as excessive risk-taking,” Midkiff warns. Banks that hesitate too much risk falling behind. Strategic ambition, paired with disciplined risk oversight, creates long-term resilience. 

Recent history makes the case. The collapse of Silicon Valley Bank in 2023 wasn’t just about weak controls—it was a failure of strategic risk thinking. That example reinforces the need for forward-looking models and leadership-level engagement with risk. 

Innovation demands discipline. Looking ahead, Midkiff sees tools like AI and RegTech as potential growth accelerators—but only if governance keeps pace. Banks that invest in data quality, automation, and regulatory integration will be better prepared to seize new opportunities while staying on solid ground. 

Bottom line: Growth isn’t the enemy of risk. When managed well, it’s the reward. And in a banking environment full of change, institutions that align sound risk management with smart expansion will have the edge. 

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