A recent Bank of International Settlements report isn’t exactly an air-raid siren. But it signals banks may be ill prepared for the next crisis.
The importance of key vendor relationships requires that banks monitor their vendor’s business activities and environment as closely as their own.
Continuing regulatory scrutiny should drive banks to perform comprehensive risk assessments on their mortgage servicing operations.
Comprehensive risk assessment is necessary not only to satisfy the examiners but also to protect the institution in an era of rapid regulatory change.
Improving an organization’s risk culture requires spreading the message deep into the ranks to get everyone thinking of themselves as a risk manager.
More effective risk management means bringing back the strategic planning component to operational risk management.
Recent lender losses have underscored the need to supplement credit bureau reports with alternative data sources.
To avoid damaging good customer relationships because of credit issues, financial institutions need to take a more proactive approach to handling delinquencies.