On May 20th, the Federal Deposit Insurance Corporation (FDIC) published its 2022 Risk Review, a comprehensive summary of emerging risks in the U.S. banking system as observed in 2021. The 2022 Risk Review:
- Expands coverage of risks from prior reports by examining operational risk to banks from cyber threats and illicit activity, and climate-related financial risks faced by banking organizations.
- Provides a retrospective summary of conditions in the U.S. economy, financial markets, and banking sector, and presents key credit and market risks to banks as of year-end 2021.
- Focuses on the effects of these risks on community banks in particular, as the FDIC is the primary federal regulator for the majority of community banks in the U.S. banking system.
The Risk Review is a critical component in any financial institution’s comprehensive risk assessment.