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The ProSight Journal

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  • Compliance & Regulation, Growth & Innovation, Risk, Talent & Workforce
A Loan Covenants Primer for Lenders
A Loan Covenants Primer for Lenders
Covenants are loan agreements between a borrower and a bank that communicate the bank’s expectations during their borrowing relationship. Borrowers,…
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  • Compliance & Regulation, Growth & Innovation, Risk
Core Concepts: Funding a Company and Capital Structure
Core Concepts: Funding a Company and Capital Structure
Lending to companies is a cornerstone of banks’ business. Borrowing from banks is just one way, though, that companies fund…
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  • Compliance & Regulation, Fraud, Risk, Talent & Workforce
The Potential of RCSAs: Key Findings From RMA’s Industry Survey
The Potential of RCSAs: Key Findings From RMA’s Industry Survey
In strengthening the ability of organizations to identify process gaps and weaknesses, risk and control self-assessments (RCSAs) have become critical…
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  • Risk
Kicking the Tires: Risks and Opportunities in Lending to Used Car Dealers
Kicking the Tires: Risks and Opportunities in Lending to Used Car Dealers
Not long ago, the pandemic and supply chain shortages caused major disruptions in the new and used vehicle markets. When…
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  • Fraud, Risk, Talent & Workforce
Steps Smaller Banks Can Take To Better Manage Cybersecurity Risks
Steps Smaller Banks Can Take To Better Manage Cybersecurity Risks
Defending against cybersecurity threats has become increasingly challenging for small and mid-sized banks as their technology estate grows alongside already…
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  • Fraud, Risk
AI at Your Bank: How To Innovate Responsibly
AI at Your Bank: How To Innovate Responsibly
As banks continue to explore generative AI’s potential to drive efficiency and innovation across risk management and beyond, they are…
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  • Fraud, Risk
Perspectives – The CrowdStrike Wake-Up Call: A Reminder About the Risks of Critical Third Parties
Perspectives – The CrowdStrike Wake-Up Call: A Reminder About the Risks of Critical Third Parties
On July 19, 2024, I woke up to my phone buzzing with multiple notifications about an IT disruption that crippled…
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  • Compliance & Regulation, Economy & Markets, Risk
How the Harris-Trump Election Result Could Affect Banks
How the Harris-Trump Election Result Could Affect Banks
As election day approaches in a presidential race that, at least in terms of polling, is one of the closest…
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  • Compliance & Regulation, Economy & Markets, Risk
The State of Banking Regulation as the Next Supreme Court Term Begins
The State of Banking Regulation as the Next Supreme Court Term Begins
In June of this year, the Supreme Court overruled the “Chevron doctrine” in a case called Loper Bright Enterprises v….
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  • Fraud, Risk
In RMA’s Model Risk Management Survey, A Picture of Banks’ Diligence and Frustrations
In RMA’s Model Risk Management Survey, A Picture of Banks’ Diligence and Frustrations
RMA’s third annual Model Risk Management (MRM) Survey explores the issues facing banks as they attempt to measure and manage…
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  • Risk
Perspectives: New Contamination Rate Data Could Help Banks Better Assess Environmental Risk
Perspectives: New Contamination Rate Data Could Help Banks Better Assess Environmental Risk
A “wall” of maturing commercial real estate (CRE) loans is approaching amid tumultuous conditions for office properties and other property…
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  • Fraud, Risk
Using Metrics To Manage Technology Complexity
Using Metrics To Manage Technology Complexity
As technology and risk become increasingly complex for financial institutions, metrics have emerged as essential tools for effective decision-making. For…
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  • Compliance & Regulation, Fraud, Risk
Why Check Fraud Is Spreading and So Hard for Banks to Prevent
Why Check Fraud Is Spreading and So Hard for Banks to Prevent
Low-tech check fraud remains a high-cost problem for banks even as new technology and investments promise solutions for fighting this…
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  • Compliance & Regulation, Risk
Additional Considerations for Structuring Owner-Occupied CRE Loans, Including SBA Credits (Part II of II)
Additional Considerations for Structuring Owner-Occupied CRE Loans, Including SBA Credits (Part II of II)
For C&I lenders, familiarity with SBA 504 and 7(a) CRE loans is crucial in recognizing additional ways to meet borrower…
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  • Compliance & Regulation, Risk
Basel III and Its Potential Effect on Operational Risk Management
Basel III and Its Potential Effect on Operational Risk Management
The sweeping changes described in the Basel III Endgame proposal raised many questions within banking circles when they first were…
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  • Compliance & Regulation, Risk
Three Ways Banks Can Address the Risks of Unaffordable and Unavailable Insurance
Three Ways Banks Can Address the Risks of Unaffordable and Unavailable Insurance
Whether it’s shockingly higher premiums or difficulty finding coverage at all, businesses and homeowners everywhere are affected by today’s unforgiving…
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  • Compliance & Regulation, Fraud, Risk
The European Union AI Act—Time To Start Preparing
The European Union AI Act—Time To Start Preparing
Artificial intelligence and, more recently, generative AI will have a transformative impact on economic growth and productivity. That is true,…
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  • Compliance & Regulation, Risk
The EU’s Artificial Intelligence Act Has Gone Live: How Will it Affect U.S. Banks?
The EU’s Artificial Intelligence Act Has Gone Live: How Will it Affect U.S. Banks?
The European Union’s new Artificial Intelligence Act went into force on August 1. Two years from that date, organizations will…
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  • Compliance & Regulation, Economy & Markets, Risk
For Banks, There Is No Escape From Geopolitical Risk
For Banks, There Is No Escape From Geopolitical Risk
We live in an increasingly volatile world. Think of it as a return to the norm. After the devastation of…
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  • Compliance & Regulation, Risk, Talent & Workforce
Fostering a Strong Culture to Better Manage Risk
Fostering a Strong Culture to Better Manage Risk
When it comes to targeting risks at a financial institution, the enemy sometimes is within. Employee misconduct and ethical lapses—intentional…
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  • Compliance & Regulation, Economy & Markets, Fraud, Risk
Geopolitical Risks on the Rise: Practical Advice for Banks
Geopolitical Risks on the Rise: Practical Advice for Banks
Geopolitical risk is becoming an increasingly urgent concern for banks, driven by the growing unpredictability of global events and their…
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  • Compliance & Regulation, Risk
Examining the Potential Risks in Lending to Insurance Agencies and Brokers
Examining the Potential Risks in Lending to Insurance Agencies and Brokers
The insurance market is in turmoil as inflation, climate risk, and rising reinsurance costs drive up prices across the board….
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  • Compliance & Regulation, Economy & Markets, Risk
Time for the Fed to Step Up, What the Election Won’t Affect, and More Takes From the Top Moody’s Economist
Time for the Fed to Step Up, What the Election Won’t Affect, and More Takes From the Top Moody’s Economist
Wild Wall Street volatility. An election between candidates with dramatically different visions for the U.S. Rocky real estate markets and…
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  • Risk
Ask the Workout Window: When Environmental Risk Surfaces
Ask the Workout Window: When Environmental Risk Surfaces
QUESTION: Our bank is prudent about conducting appropriate inquiries and risk-based environmental diligence when making loans. But as we considered…
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  • Compliance & Regulation, Risk
For Banks, Marijuana’s Reclassification Could Clear a Path to Lending
For Banks, Marijuana’s Reclassification Could Clear a Path to Lending
In May the U.S. Drug Enforcement Agency began a process to reclassify cannabis from a Schedule I to a Schedule…
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  • Compliance & Regulation, Risk
Regulator Focus on Insurance Woes May Help Credit Risk Management
Regulator Focus on Insurance Woes May Help Credit Risk Management
More private insurers are pulling coverage and withdrawing from property and casualty markets they deem high risk, presenting the banking…
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  • Compliance & Regulation, Risk
Ask the Workout Window: Facing the Five D’s of Financial Distress
Ask the Workout Window: Facing the Five D’s of Financial Distress
QUESTION: Jason, I have a relationship with a manufacturer that is owned by two brothers. They’ve recently had a falling…
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  • Compliance & Regulation, Risk
Preparing for the Proposed Long-Term Debt Rule: Part II (Compliance and Optimization)
Preparing for the Proposed Long-Term Debt Rule: Part II (Compliance and Optimization)
A new rule requiring large banks to issue long-term debt (LTD) to boost their resilience and resolvability is on the…
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  • Compliance & Regulation, Risk
The Supreme Court Revisits Chevron: What Does It Mean for Banking Regulation?
The Supreme Court Revisits Chevron: What Does It Mean for Banking Regulation?
For 40 years, federal courts have reviewed statutory interpretation by federal agencies using the analysis prescribed by the U.S. Supreme…
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  • Growth & Innovation, Risk
Suggestions for Enhancing Third-Party Risk Management at Community Banks
Suggestions for Enhancing Third-Party Risk Management at Community Banks
John Eckert has focused on third-party risk management as a national bank examiner for the Office of the Comptroller of…
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  • Compliance & Regulation, Risk
Industry Panel Sees Office Reckoning, Opportunity in Other CRE Segments
Industry Panel Sees Office Reckoning, Opportunity in Other CRE Segments
RMA’s New York Chapter convened a panel of commercial real estate experts recently to share their thoughts on the state…
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  • Risk
Climate Risk Update: The Intersection of Physical Risk and Insurance Industry Developments
Climate Risk Update: The Intersection of Physical Risk and Insurance Industry Developments
Banks and insurance companies are now recognizing that catastrophic weather events are becoming a major and inescapable risk factor—one that…
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  • Growth & Innovation, Risk, Talent & Workforce
Pausing To Assess Risk in the Multifamily Construction Boom
Pausing To Assess Risk in the Multifamily Construction Boom
The multifamily housing sector has been a reliable space for lenders amid ongoing concerns about concentration risk in struggling pockets…
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  • Compliance & Regulation, Risk, Talent & Workforce
Voices in Risk Management – Nicole Knutson
Voices in Risk Management – Nicole Knutson
Nicole Knutson credits her rise at U.S. Bank to “being exposed to many different aspects of the company” and learning…
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  • Risk, Talent & Workforce
Bank Training Evolving To Match New Workforce Trends
Bank Training Evolving To Match New Workforce Trends
A new generation of workers raised in a digital-first world needs new types of training to meet its career and…
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  • Compliance & Regulation, Risk
As Insurance Rates Rise, So Does Bank Risk
As Insurance Rates Rise, So Does Bank Risk
Just how quickly is the cost of homeowner’s insurance rising? Last year, the average premium for an annual policy in…
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  • Growth & Innovation, Risk
How NPV Helps in Choosing the Best Workout Option for a Distressed Loan
How NPV Helps in Choosing the Best Workout Option for a Distressed Loan
In 10 years at a mid-sized community bank, Willie Malone worked his way up from underwriter to relationship manager. Over…
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  • Compliance & Regulation, Fraud, Risk
Generative AI: Balancing Potential and Pitfalls
Generative AI: Balancing Potential and Pitfalls
Artificial intelligence is evolving fast, and one particular aspect has captured the imagination of industry leaders and innovators alike: generative…
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  • Compliance & Regulation, Risk, Talent & Workforce
Profit’s Down on the Farm, but Bank Risk Managers See a Bigger Picture
Profit’s Down on the Farm, but Bank Risk Managers See a Bigger Picture
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  • Compliance & Regulation, Economy & Markets, Fraud, Risk, Talent & Workforce
Geopolitical Risk a Wildcard as CROs Focus on Regulation, Technology Risk, and Other Key Concerns
Geopolitical Risk a Wildcard as CROs Focus on Regulation, Technology Risk, and Other Key Concerns
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  • Compliance & Regulation, Risk
THE WORKOUT WINDOW: Razing Some Fed Flags
THE WORKOUT WINDOW: Razing Some Fed Flags
In each issue of The RMA Journal, veteran workout leader Jason Alpert gives tips on thorny workout challenges….
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  • Compliance & Regulation, Risk, Talent & Workforce
Explainability Challenges Are a Growing Concern for Bank Governance of AI
Explainability Challenges Are a Growing Concern for Bank Governance of AI
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  • Growth & Innovation, Risk
Thinking of Reducing Your Bank’s Exposure to CRE? Here’s a How-To on Portfolio Sales
Thinking of Reducing Your Bank’s Exposure to CRE? Here’s a How-To on Portfolio Sales
The drumbeat of warnings about commercial real estate (CRE) loans continues to echo around the industry. Banks are worried, and…
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  • Compliance & Regulation, Risk, Talent & Workforce
Learnings From Risk Appetite’s Evolution and Ideas for the Path Forward
Learnings From Risk Appetite’s Evolution and Ideas for the Path Forward
Articulating risk appetite may be the most important activity for any financial institution to get right. Clearly defining the nature…
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  • Compliance & Regulation, Risk
Preparing for the Long-Term Debt Rule ​(Part I: The Requirements)
Preparing for the Long-Term Debt Rule ​(Part I: The Requirements)
The LTD requirements are designed strictly to increase the resources available to regulators in case a bank fails. Unlike the…
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  • Growth & Innovation, Risk
Seven Key Themes From the 2024 RMA Community Bank Survey
Seven Key Themes From the 2024 RMA Community Bank Survey
The Covid-19 pandemic and its economic fallout dramatically changed the operating landscape for community banks. Today’s higher interest rates—a product…
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  • Risk
Assessing the Banking Industry a Year After the SVB Collapse
Assessing the Banking Industry a Year After the SVB Collapse
Last March, Silicon Valley Bank collapsed after enduring bank runs that at their height drained $42 billion in reserves over…
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  • Growth & Innovation, Risk
Preparing for and Responding to Disaster
Preparing for and Responding to Disaster
When disaster strikes the area your bank serves, it can be difficult to fully understand the emotional and physical toll…
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  • Growth & Innovation, Risk
Introducing Our Problem Loan Policy Tool
Introducing Our Problem Loan Policy Tool
This example of a community bank problem loan policy can be a resource for crafting or revising your own institution’s…
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  • Compliance & Regulation, Growth & Innovation, Risk
A FedNow Service Update for Community Banks
A FedNow Service Update for Community Banks
Since going live on July 20, 2023, the Federal Reserve’s FedNow® Service has enabled participating financial institutions to transfer funds…
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