Concern levels for regulatory compliance and risk management are dropping among banks and credit unions across the US, despite increasing regulatory constraints, according to Wolters Kluwer’s annual Regulatory and Risk Management Indicator survey.
Findings from the study revealed that respondents’ concerns over their organisations’ ability to maintain compliance with new regulations declined to 66% in 2016 compared to 73% a year ago.
The percentage of respondents concerned in showing compliance to regulators dropped to 64 from 71.
Concern over keeping track of changing regulations among respondents dropped to 63% from 72%, while anxiety about risk management across all business lines dipped to 52% from 58%.
Also, 78% said that they were confident about their organisation’s ability “to manage a regulatory change, while 77% said that they were “confident in their organization’s Compliance Management System.
U.S. Advisory Services and Regulatory Relations executive vice president Timothy Burniston said: “While the survey doesn’t measure why concerns have leveled off, a strong possibility is that respondents have been arming themselves with better tools, resources and programs to help navigate through the wide range of complex challenges they face.”
When asked about challenges that hinder the proper implementation of their compliance programs, 72% of respondents said that their chief compliance officer has the ear of executive leadership, reporting directly to the president/CEO or board of directors.
Other challenges cited by respondents include inadequate staffing (33%), manual processes (26%), and competing priorities (21%).
Also, 70% of the respondents cited cybersecurity among the top risks anticipated in the coming 12 months. Other risks cited by respondents include regulatory change management, fair lending and third-party risk.