This strong performance has occurred concurrently with institutions’ continued efforts to improve their risk-identification and management strategies. That said, certain areas in banking operations, such as credit concentrations and business continuity planning, are placing pressures on risk-management systems.
In turn, supervisors are increasingly scrutinizing these and other relevant areas to ensure that management is fully aware of their risks and has made any necessary risk-management upgrades. Of course, bankers may be somewhat concerned about the impact that supervisory initiatives--even proposed guidance--could have on their business.