Managing mortgage-related
The 2020 Regulatory and Risk Management Indicator survey revealed an 86% share of respondents had concerns over pandemic risk planning, 85% over loan default risk and 79% over business resilience and adaptability.
Those concerns are well founded since they align with the latest loan data showing
Overall, the Main Indicator Score — a measurement between 0 and 200 amalgamating 10 factors, including new federal regulations, total enforcement actions, and the amount of fines banks and credit unions received over the past 12 months — increased by eight points from 2019 to 103.
"Relatively high levels of concern remain across a range of areas, reinforcing the fact that regulatory compliance and risk management issues continue to significantly challenge financial institutions," Timothy Burniston, senior advisor for regulatory strategy at Wolters Kluwer Compliance Solutions, said in the report. "That said, respondents expressed their highest levels of confidence in the past four years regarding their organizations' ability to manage risk across all business lines."
Looking ahead, 72% of institutions will escalate their emphasis related to cybersecurity risks over the next 12 months, down from 78% the year prior. A 61% share placed a priority on credit risk, a big jump from 45% in 2019. Regulatory and compliance risk came next at 40%, down from 47% year-over-year.
"The input from our survey respondents reflects another year of challenges for the U.S. banking industry as it navigates through the tumultuous impacts of the pandemic and accompanying regulatory changes," said
