Philadelphia, PA (March 21, 2019) —
The Risk Management Association recently
conducted its regulatory survey in the fall of 2018. The purpose of the survey,
which generated responses from 36 member institutions of varying asset sizes, was
to identify trends and issues in risk management affecting mid-size and large
banks. The survey focused on six categories, including enterprise risk
management; compliance; examinations; accounting issues; lending and service
products; directors’ duties and responsibilities; and the regulatory
environment.
Among the findings, it was learned that:
- 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.
About RMA
Founded in 1914, The Risk Management Association is a not-for-profit,
member-driven professional association whose sole purpose is to advance the use
of sound risk management principles in the financial services industry. RMA
promotes an enterprise approach to risk management that focuses on credit risk,
market risk and operational risk. Headquartered in Philadelphia, Pennsylvania,
RMA has 2,500 institutional members that include banks of all sizes as well as
nonbank financial institutions. They are represented in the Association by
18,000 individuals located throughout North America, Europe, Australia and
Asia/Pacific.
Media Contacts
Stephen Krasowski, skrasowski@rmahq.org, 215-446-4095
Frank Devlin, fdevlin@rmahq.org, 215-446-4137