Findings from the Risk Management Association (RMA) Annual Community Bank Survey showed community banks maintain cybersecurity and credit risks are among the top concerns.
For the past 10 years, RMA, a not-for-profit professional association seeking to advance sound risk management principles in the financial services industry, has surveyed community bankers for the past 10 years to identify the forces most impacting them and the approaches taken to address their challenges.
The survey conducted in the summer of 2022 involved over 100 community bankers nationwide, per the RMA, with respondents possessing titles that include Chief Risk Officer, Chief Credit Officer, and Chief Lending Officer – for institutions with less than $10 billion in assets.
“Community banks continue to face unprecedented risks and extraordinary demands on their time, attention, and resources,” RMA President and CEO Nancy Foster said. “To help this vital part of the industry continue to meet the needs of its communities, RMA is working to provide solutions and content to help community banks meet the challenges ahead.”
According to the survey results, 85 percent of community bankers expressed cybersecurity risks as the chief concern, followed by credit risk (84 percent).
Additionally, the survey showed 65 percent of respondents expressed concerns regarding operational risks, followed by IT risks (62 percent) and interest rate risk (57 percent).
The RMA noted the questionnaire was developed in conjunction with the organization’s Community Bank Council, with its members also providing insight on results incorporated into the report.