Some banks refer to business-as-usual with a shorthand, BAU. In the spring of 2020, we were jolted out of BAU, and we are in the process of determining what the new BAU will be. Aspects of our industry came to a grinding halt, and it still is not clear how or when some semblance of normalcy will return. At a high level, the risks to banks are clear. We have business customers who lost revenue, investor portfolios that lost value, and households who lost income. We see uncertainty everywhere, which makes it challenging to look forward. But, looking forward is what we need to do.
Bank leaders manage uncertainty and risk every day. These leaders have processes, practices, and tools for managing risk. Now is an excellent time to use risk management tools and methods to forge a path forward. One place to start is with your risk committee. You can focus you risk committee on the future with these five steps.