At its heart, Enterprise Risk Management (ERM) is a comprehensive and strategic approach to identifying, assessing, and managing risks across an organization… Organizations across many industries have embraced ERM to identify, assess, and manage risks in a systematic and integrated manner. By implementing effective ERM frameworks, these organizations are strengthening their risk management capabilities, enhancing decision-making, and improving their ability to navigate uncertainties and achieve sustainable growth.

The $1bn threshold also opens new possibilities for raising capital and growth through acquisition. As such, it is important for banks to assess their readiness for this higher level of oversight and address key gaps in capabilities to prepare for future growth. Our firm has worked with many institutions as they prepared for this evolution.

“Persistent weaknesses” will drive exam intensity and possible ratings downgrades. Growing supervisory scrutiny of “persistent weaknesses” at banks is focusing on management, and in particular, their ability to adequately identify and mitigate risks.

Money market assets reach record high. Investors chasing some of the highest yields in months pile into cash and bonds, according to Bank of America Corp. strategists. Flows into Treasuries have reached $127 billion this year, set for an annualized record of $206 billion, BofA said.

Moody’s cut the credit ratings of a host of small and midsized U.S. banks. Major lenders are under review for a potential downgrade, and Moody’s also changed its outlook to negative for 11 banks.

Risk and compliance are top of mind for financial institutions of all sizes. To keep their heads above water, financial institutions are investing more heavily in governance, risk and compliance efforts, known collectively as GRC.

Regulators in Washington have unfurled a hefty reform package of post-financial crisis capital regulations, banking industry advisers are honing in on what they consider most disruptive, including risk management requirements that could affect real estate lending, consumer credit and wealth management.

Interagency guidance on contingency funding plans released today. If you haven't revisited your CFP since March 2023, you should. Also, test your contingent funding sources from time to time. - Carleton Goss