Benefits of regular external audits include: 1. Independent Verification: Third-party reviews help identify vulnerabilities and gaps that internal teams may miss. 2. Regulatory Compliance: Audits help institutions stay aligned with regulations — even when oversight is less frequent. 3. Proactive Risk Management: External audits uncover and address issues early, allowing institutions to mitigate risks before they escalate. 4. Stakeholder Confidence: Independent assessments reassure customers, investors and regulators alike. What Sets Effective Risk Management Apart Cyber threats aren’t slowing down, especially as AI introduces new risks. Smart investments in technology and sound risk management practices are essential. That includes regular cyber risk assessments to guide informed, prioritized decisions about which risks to mitigate next. These assessments keep financial institutions out of breach headlines — and out of regulators’ crosshairs — while ensuring they can continue serving customers without disruption. Effective risk management isn’t just about checking boxes — it’s about protecting the institution and the people it serves. That protection becomes even more crucial as traditional oversight scales back. Navigating Risk in a Time of Reduced Oversight The downsizing of key financial regulators presents serious challenges. However, institutions aren’t powerless. External IT and IS audits offer a meaningful way to uphold oversight standards, even as federal agencies reduce staff. By providing independent verification, ensuring regulatory compliance, managing risks and enhancing stakeholder confidence, external audits play a crucial role in maintaining the safety and soundness of the sector. As financial institutions navigate these changes, it’s essential to strike the right balance between cost-saving initiatives and continued investment in oversight and technology. Sustaining trust, stability and operational resilience requires a proactive, risk-informed approach, even in the face of reduced regulatory scrutiny. This article was originally published on sbscyber.com. SBS helps business leaders identify and understand cybersecurity risks to make more informed and proactive business decisions. For more information, contact Ryan Kast at (605) 270-9381 or ryan.kast@sbscyber.com. Learn more at sbscyber.com. Sustaining trust, stability and operational resilience requires a proactive, risk-informed approach, even in the face of reduced regulatory scrutiny. 16 NEBRASKA BANKER
RkJQdWJsaXNoZXIy MTg3NDExNQ==