Op Risk, Regulatory Compliance, and Credit Top Challenges for Banks in 2018, According to RMA Survey

RMA’s regulatory survey, conducted in the fall of 2018, revealed the trends and issues in risk management affecting mid-size and large banks. Thirty-six member institutions of varying sizes responded to questions pertaining to the following categories:

  • Enterprise risk management.
  • Compliance.
  • Examinations.
  • Accounting issues.
  • Lending and service products.
  • Directors’ duties and responsibilities.
  • The regulatory environment.

The following are top findings from the survey:

  • The greatest risk management challenges in 2018 were operational risk (including cyber and third-party risks), regulatory compliance, and credit.
  • Over 50% of all respondents reported increases in expenditures for regulatory compliance in 2018.
  • Of all respondents, 32% indicated that increased regulatory demands have resulted in less product flexibility, and 28% said this resulted in slower response times to meet consumer requests.
  • Approximately 62% of respondents indicated the top challenge for bank directors is keeping up with the ever-changing regulatory environment.
  • Over 79% of respondents believe opportunities remain for further reduction of regulatory burden.
  • The greatest risk management challenges forecasted for 2019, in addition to operational risk and compliance, include talent attraction and retention and unregulated nonbank competition.


Washington, The Week Ahead - June 1-5, 2020

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