Wolters Kluwer’s Compliance Solutions division in December released the results of its annual Regulatory and Risk Management Indicator survey for the US in 2018. The survey showed a Main Indicator Score of 85, an 18% decrease from 2017.
The high score demonstrates continued anxiety on certain risk and regulatory issues that demand close attention. However, the firm highlights a “notable easing” in the anxiety levels of US banks and credit unions in managing their risk and regulatory compliance obligations as compared to the 2017 survey results.
The Indicator survey was conducted nationwide between 22 August and 12 September 2018 and generated 582 responses.
Despite the recent passage of regulatory relief legislation by the US Congress, 62% of respondents indicated that they “do not anticipate a likely reduction” in regulatory burden in the coming two years.
“While we see a reduction in the Main Indicator Score, more than 60% of respondents continue to rate their compliance concerns as a ‘7 or higher’ on a 10-point scale. It is notable that risk management concerns also remain fairly high, and there is palpable apprehension about several top issues, including cybersecurity, IT risk and credit risk that respondents indicated will receive escalated priority and investment in the coming 12 months,” says Timothy R. Burniston, Senior Advisor for Regulatory Strategy at Wolters Kluwer Compliance Solutions.
Over the next 12 months, the surveyed institutions said they are most likely to make “moderate to high” investments in updating policies and procedures (78%), strengthening risk assessment and controls (77%), and training their staff, board of directors and senior management (75%) as priorities. The responses indicate a continuing concern about compliance risk management in general and point to the specific areas regulators are likely to scrutinize.
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