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

The 2024 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 2024 Risk Survey in Bank Director’s summary.

Top issues and goals front of mind for banks included:

• Margin Pressures Soar. The percentage of bank leaders reporting a tighter net interest margin jumped to 78% from 26% last year, while 14% say NIM has improved because of rising interest rates.
• Deposit Retention. 59% of respondents said they’ve experienced some deposit loss, with minimal to moderate effects to the bank’s funding base, due to rising interest rates. Another 9% have experienced significant impacts on their funding base.
• Liquidity Management Challenges. The percentage of respondents who reported higher concerns around liquidity risk increased to 76%, from 71% last year. When asked about liquidity management strategies, 59% said their bank would borrow funds from a Federal Home Loan Bank this year, while 49% said their bank would raise interest rates offered on deposits.
• Stress Test Results. 78% of respondents said their bank conducts an annual stress test. 58% of respondents said they’ve adjusted their liquidity plan based on the results of that stress test, and 52% are keeping a close eye on loans set to renew in the next six to 12 months.
• Vendor Risk Oversight. 95% of respondents said they assess the cybersecurity practices of the bank’s third-party vendors, while just 40% assess cybersecurity practices for fourth-party vendors. Just 12% say they have faced greater scrutiny by regulators around this issue.
• Enhanced Fraud Protection. 90% of bank leaders would be open to using artificial intelligence (AI) technologies for fraud prevention and alerts, and 81% would use AI for cyberattack prevention and detection.

Risk Insights for 2024

Explore results of Bank Director’s 2024 Risk Survey and insights to navigate liquidity, cybersecurity, and other current challenges.

Additional Resources

View key insights uncovered by the 2023 Risk Survey in Bank Director’s summary or visit our 2023 survey page to view a video overview. You can also learn more about managing banking risks when you read our article.