I’ve had the pleasure of working in the risk and regulatory practice for the past 15 years, working with various banks of differing risk appetites, risk tolerances and sizes, and with net assets ranging from $50 billion upward. Based on this experience, as well as through conversations with colleagues who are leading large banks and financial institutions, I consider the following to be the top risks that the industry should be concerned about in upcoming years:
Failure Of The Three Lines Of Defense
The “three lines of defense” model for risk management has been accepted as a best practice by federal banking regulators. This refers to oversight by operational management, internal governance and independent internal audit. But, as seen by the bank failures of the past decade, the…
