Financial institutions are grappling with rising industry risks, underscoring the urgent need for executives to identify and address potential threats before they harm their business.

The Bank Director 2025 Risk Survey delivers critical insights from directors, chief executive officers, risk officers, and senior executives of US banks below $100 billion in assets, spotlighting the top risks facing financial institutions.

Explore key insights uncovered by the 2025 Risk Survey in Bank Director’s summary.

Top issues and goals front of mind for banks included:

• Fighting Fraud. Large majorities say their bank has implemented ongoing staff education (86%) and improved training (82%) to address fraud in 2024; 71% regularly communicate to customers about scams and threats. Smaller percentages say they have improved internal controls (42%) or implemented specific customer education on AI fraud and deepfake media (30%).
• Protecting the Bank from Cyberattacks. A majority say their institution conducted a tabletop exercise of its cybersecurity incident response plan over the prior 12 months. 70% say their cybersecurity insurance premiums have increased over the past 18 months.
• Applying Stress Test Data. Almost 75% say their bank performs an annual stress test. As a result of their latest stress test, 53% say they adjusted their liquidity plan or policy, 44% adjusted their asset/liability management strategy and 39% adjusted their capital plan or policy.
• Regulators Focusing on Liquidity. The percentage of bank leaders who cite liquidity management among their top strategic challenges this year fell to 17%, from 32% a year ago. Liquidity remains a key focus for regulators, with 62% naming it as an area of heightened attention on their last exam.
• Strengthening BSA/AML Compliance. 31% percent say their bank saw heightened regulatory attention on Bank Secrecy Act and anti-money laundering compliance in their latest exam, up from 20% last year. Over the past 18 months, 46% say their bank has invested in technology to boost its BSA/AML compliance function, and 41% added staff in that area. 42% percent improved training for frontline employees.
• Diminishing Deposit Woes. Concern about deposit pricing fell dramatically, with 37% citing it as a strategic challenge over the next 18 months, compared with 64% who said the same in 2024. Most respondents expect core deposits to moderately increase (56%) or remain stable (32%) in 2025.

Risk Insights for 2025

Explore results of Bank Director’s 2025 Risk Survey and insights to navigate fraud, cybersecurity, liquidity and other current challenges.

Additional Resources

Learn more about managing banking risks with AI when you read our article.