The Risk Management Association 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: enterprise risk management, compliance, examinations, accounting issues, lending and service products, directors’ duties and responsibilities and the regulatory environment.

Among the findings, the survey revealed:

• 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, while 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

Founded in 1914 and headquartered in Philadelphia, 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 has 2,500 institutional members that include banks of all sizes as well as nonbank financial institutions.