Following a drop in a year that saw passage of a major regulatory reform law, U.S. financial institutions’ anxiety levels over compliance obligations rebounded in 2019, according to a survey released today by Wolters Kluwer. This year’s regulatory and risk management indicator score was 95, 10 points up from 2018, the company said.
Specific points of high concern contributing to the overall indicator score were the effects of new Home Mortgage Disclosure Act rules, overall risk management concerns, fines and ongoing challenges from compliance change management. From a risk management perspective, nearly eight in 10 banks continued to prioritize cybersecurity risk; however, credit risk, compliance risk, third-party risk and operational risk all saw double-digit percentage increases in how highly they would be focused on in the year ahead.
