As Banks Offer Innovative Services, Risks Heighten
Strategic, operational and compliance risk remain top concerns for bank executives, according to the recently released Office of the Comptroller of the Currency's (OCC's) Semiannual Risk Perspective report.
With increasing competition among banks, nonbanks and financial technology firms, financial institutions must offer innovative products and services to meet the demands of their customers. If banks do not use risk management practices that match their overall business strategies, innovation might heighten their strategic risk. However, the alternative to innovating is the risk of being at a competitive disadvantage.
Banks, customers and third-party relationships are increasingly vulnerable to cybersecurity threats. Phishing attacks, extortion demands and social engineering are a few of the common ways cyber criminals are attacking banks and related businesses. This can cost a bank fraud losses, legal fees and settlements, as well as the potentially more harmful effect of a tarnished reputation.
Compliance risk management remains complex as banks implement new policies and procedures to comply with BSA/AML and the new Military Lending Act (MLA). Some banks lack sufficient resources to maintain the expertise necessary to effectively manage BSA/AML risks and fail to develop appropriate controls as their products and services change to accomodate customers.
We have a number of resources available to help educate you about risk management, cybersecurity, email phishing, BSA/AML compliance and more. Our financial institution experts are prepared to help you devise, properly design and execute a risk management plan for your needs.
Click below on some of our latest thought leadership to learn more:
- Going Hand in Hand: Enterprise Risk Management and Risks Impacting Your Financial Institution
- Ready Your Company for the Next Wave of Phishing
- Cybersecurity: How to be Proactive
- VIDEO: Cyberattack Prevention & Cyber Insurance
- VIDEO: How Cyber Insurance Helps Protect Against Cyberattack Liabilities
- Don't Get Hung Out to Dry: Bank Regulators Targeting BSA/AML Compliance
- Top 5 Reasons BSA/AML Programs Fail and How to Ensure Yours Doesn't
To discuss a risk management strategy for your financial institution, contact Bianca Sarrach, Principal, Advisory Services, at 314.983.1365 or email@example.com.