Financial institutions face increasing industry risks—making it important for executives to identify and address potential threats before they negatively impact their business.

The 2023 Risk Survey—presented by Bank Director and Moss Adams—includes insights from directors, chief executive officers, risk officers, and senior executives of US banks below $100 billion in assets. The survey focuses on the top risks facing financial institutions.

Explore key insights uncovered by the 2023 Risk Survey in Bank Director’s summary.

Top issues and goals front of mind for banks included:

• Deposit Pressures. Asked about what steps they might take to manage liquidity, 73% of executives and directors said they’d raise interest rates offered on deposits, and 62% said they’d borrow funds from a Federal Home Loan Bank. Other options included raising brokered deposits, participation loans, and more. Respondents said they’d be comfortable maintaining a median loan-to-deposit ratio between 70% to 90%.
• Cybersecurity Vigilance. 87% of respondents said their bank has completed a cybersecurity assessment, with most banks using the tool offered by the Federal Financial Institutions Examination Council. Respondents report a median of $250,000 budgeted for cybersecurity-related expenses.
• Stress on Fees. 36% of respondents said their bank has adjusted its fee structure in anticipation of regulatory pressure, while 8% did so in response to direct prodding by regulators. More than half of banks with over $10 billion in assets said they adjusted their fee structure, either in response to direct regulatory pressure or anticipated regulatory pressure.
• Increase in Climate Discussions. Bank leaders who say their board discusses climate change at least annually increased over the past year to 21%, from 16% in 2022. 61% of respondents said they don’t focus on environmental, social and governance (ESG) issues in a comprehensive manner, but public banks that disclose their progress on ESG goals grew to 15%, from 10% last year.
• Stress Testing Adjustments. Over 75% of respondents said their bank conducts an annual stress test. Many bank leaders described the ways they’ve changed their approach to stress testing in anticipation of a downturn. One respondent described adding a liquidity stress test in response to increased deposit pricing and unrealized losses in the securities portfolio.

Risk Insights for 2023

Explore results of Bank Director’s 2023 Risk Survey and insights to navigate liquidity, cybersecurity and other current challenges.

Additional Resources

View key insights uncovered by the 2022 Risk Survey in Bank Director’s summary or visit our 2022 survey page to view a video overview. You can also learn more about managing credit risk when you read our article.