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We are experiencing a level of regulatory intensity rarely seen—not the simple effect of “net-new� regulations but the combination of a high-volume of regulatory issuances, the complexity and breadth of regulatory supervision, and the impact that these changes impose across the organization.

Key takeaways:

1. ÌýA return to heightened risk standards - Demonstrate sustainability
2. Prudential regulators “level-upâ€� expectationÌý-ÌýShow strength and resiliency
3. Data, models, and “model-likeâ€� risks gain focusÌý-ÌýDrive security, privacy, and fairness
4. Strong supervisory and enforcement actionÌý-ÌýProve accountability and stakeholder trust
5. “Old regulations� apply, even to new areas

Regulatory Intensity

Given continued economic fluctuations, election-year discord and legal actions, high regulatory intensity particularly in the areas of risk management/governance, financial risk, and data

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Risk Standards

Supervisory intensity and enforcement, a focus on agility and mitigation of risk and compliance “shocks�, and expectations for robust (and demonstrable) risk accountability and governance combine to heighten risk standards.

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Risk Sustainability

Demonstrating "sustainability" in Risk functions will transcend across regulatory areas, requiring it to be embedded across risk pillars and into financial analysis and business as usual.

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Growth & Resiliency

Expanding regulatory scrutiny of “too big to manage� (TBTM), including firms� ability for M&A activity or portfolio growth in the context of sound liquidity management, resolution planning, and demonstration of strong financial controls.

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Capital & Valuations

Escalating regulatory attention on risk calculations, stress testing, capital planning, and broad risk management � across financial risks as well as operational risks.

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‘Threat Actors�

Expanding regulatory expectations around the detection, mitigation, tracking and remediation of ‘threat actors� � perpetrators of financial crime, fraud, and misconduct - all while maintaining consumer protections

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Fairness

Multi-agency focus on fairness principles, including access, treatment, and product risks - “say what you do, do what you say.�

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Responsible Systems

Regulators are applying existing rules to “automated systems�, “predictive analytics�, and other “innovative new technologies�, across a wide array of risks and across the entirety of the firm. As the rules and technologies evolve, risk management will be critical to innovating while maintaining trust.

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Security & Privacy

In tandem with all things “Data�, broad regulatory concerns around data security, management, and privacy will include, but expand beyond, cybersecurity and IT risk to all facets of regulatory coverage.

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Data

Regulators see data as the potential "soft underbelly" for heightened risk and compliance standards, particularly around quality data governance, data risk and controls, and data lifecycle management.

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