NAVIGATING THE POTENTIAL IMPACT OF RECENT REGULATORY GUIDANCE Banks are facing unprecedented risk management challenges amid rapid technological and competitive changes. Federal and state authorities have recently issued guidance to address paradigm-altering shifts such as climate change, artificial intelligence (AI), cryptocurrency, digital and mobile banking, credit models, data security, and more. Financial institutions should understand how these changes could affect their operating model and strategy. Below are highlights of recent select regulatory guidance: Climate Risk Large financial institutions are impacted first. The Federal Reserve Board will conduct a pilot to analyze climate-related financial risk involving the six largest U.S. banks in early 2023. Financial institutions should understand how these changes could affect their operating model and strategy. By Gale Simons-Poole, Chief Regulatory Relations Officer, BHG Financial 16 The CommunityBanker
RkJQdWJsaXNoZXIy MTg3NDExNQ==