Cyber security ranked as top issue for community banks
- Details
- Published: Friday, 06 January 2023 09:04
The Tenth Annual Community Bank Survey conducted by the Risk Management Association (RMA) has identified the top threats facing this sector.
Community bank executives from more than 100 institutions note that the combined demands of technology costs, managing third-party vendors, reputational risk, and increasing regulatory pressures are pushing cyber security and technology risk to the top of the list. As the potential for recession looms, credit risk is also a top concern.
The survey identified the top risk priorities of community bankers as:
1. Cybersecurity risk | 85 % |
2. Credit risk | 84 % |
3. Operational risk | 65 % |
4. IT risk | 62 % |
5. Interest rate risk | 57 % |
6. Regulatory compliance risk | 50 % |
Percentage of respondents citing each among their top six priorities. N=101
Over the years that RMA has conducted the Community Bank Survey, community bankers have registered increasing interest in cyber security and its relationship with other risks. In this year's survey, another operational risk - IT risk - is frequently cited as important, as community banks work to enable remote workforces and improve effectiveness through automation, in addition to managing data security and erecting defenses against cyber attacks.
Regulatory compliance also continues to be a major priority and challenge for community bankers, as they strive to address regulatory requirements amid persistent resource constraints.
