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Bank Director's 2025 Risk Survey: Key Insights

In its latest 2025 Risk Survey, Bank Director, a prominent information source for leaders in the banking industry, has spotlighted pressing concerns surrounding cybersecurity and fraud. As financial institutions grapple with a surge in fraudulent activities and evolving digital threats, bank executives have placed cybersecurity at the forefront of their risk management strategies.

Rising Concerns in Cybersecurity and Fraud

Conducted among bank CEOs, senior executives, and directors nationwide, the survey revealed that over 75% of respondents classified cybersecurity as a top risk facing their institutions. Furthermore, 69% conveyed similar sentiments regarding fraud risks. Notably, check fraud has emerged as a particularly significant issue, with 94% of participants reporting that either their bank or its customers experienced some form of check fraud in the last 18 months. This alarming statistic underscores the growing sophistication of fraudsters, according to Craig Sanders, a partner at Moss Adams.

_“The rise in check fraud indicates a technological advancement in the methods employed by fraudsters,”_ Sanders stated, emphasizing the challenges that banks must confront.

Strategies to Combat Fraud

To mitigate these threats, many banks are investing in employee education and training to enhance awareness about fraud prevention. More than half of the surveyed leaders confirmed that they maintain active communication with customers concerning potential risks, illustrating a proactive approach in remaining vigilant against fraudulent activities.

Cybersecurity Measures and Challenges

In terms of cybersecurity preparedness, more than half of the banks reported conducting tabletop exercises simulating cybersecurity incidents in the past year. Observably, while there is a growing commitment to bolster cybersecurity strategies, 70% of institutions indicated that their cybersecurity insurance premiums have risen over the last 18 months, reflecting the increasing costs associated with safeguarding against cyber threats.

Managing Liquidity and Strategic Challenges

Interestingly, the survey also touched on liquidity management, revealing a notable shift in focus among bank leaders. The percentage of respondents identifying liquidity management as a critical strategic challenge fell from 32% to 17% within a year. This decline may indicate a stabilization of liquidity concerns amidst an evolving economic landscape.

Despite apprehensions surrounding the commercial real estate sector, particularly in offices, the majority of participants indicated intentions to expand their commercial real estate lending portfolios in 2025. Only 19% have reduced their concentration in commercial real estate loans over the past year, a testament to the resilience in this sector.

Adjustments Following Stress Tests

Around 75% of respondents confirmed their institutions conduct annual stress tests. Following their most recent evaluation, 53% state they have modified their liquidity plans or policies, demonstrating a responsive approach to potential economic vulnerabilities.

Regulatory Scrutiny on Compliance

The survey highlighted increased scrutiny concerning compliance with the Bank Secrecy Act (BSA) and anti-money laundering (AML) regulations. About 31% of bank representatives noted that their latest regulatory examinations brought heightened attention to compliance issues, up from 20% the previous year.

Conclusion

As the financial sector continues to navigate a challenging environment marked by potential economic fluctuations and increasing risks of cyber threats, Bank Director's 2025 Risk Survey provides crucial insights. The findings indicate a resolute focus on enhancing cybersecurity measures, combating fraud, and managing regulatory pressures.

For a comprehensive overview and additional findings from the 2025 Risk Survey, interested parties are encouraged to visit BankDirector.com.

By staying ahead of these critical challenges, bank leaders can better protect their institutions and customers, ensuring enduring financial security in a rapidly evolving landscape.