Full-service risk advisory firm forecasts continued challenges as financial institutions struggle to balance long-term viability against potentially lucrative risky investments
NEW YORK - December 12, 2011 - ICS Risk Advisors, a full-service risk advisory firm for financial institutions, announced today that according to company research, banks from Wall Street to Main Street should plan on increased regulations in 2012 due to the scandals, bankruptcies, tumultuous political climate, and slow-moving reform of 2011. Economic and hiring trends indicate another difficult year ahead as institutions are expected to trim head count and look for ways to be more profitable.
“Banks need to get back to the basics”
“Banks need to get back to the basics,” said John White, CEO of ICS Risk Advisors. “In 2011, Banks were focused on dealing with asset quality issues, and competing in a difficult market to make good loans. Stricter underwriting standards and deflated collateral values added to the challenge, and despite extraordinarily low interest rates, Banks struggled to improve margins. 2012 appears to be more of the same, particularly given the uncertainties in Europe. In a market flooded with new regulations each month, Banks need to try harder than ever to remain compliant and substitute strong returns in place of potential windfalls.”
Looking ahead to 2012, ICS Risk Advisors predicts that the following two issues will have the most impact on economic progress:
- Residential Real Estate Market – The unpredictability of the mortgage industry continues to be a massive threat to the market, and has the potential to derail positive momentum if unemployment and foreclosures increase.
- The Presidential Election – Movements like Occupy Wall Street have shown the public concern for reform, and regardless of which party wins, there is likely to be intensified debate on the issue of regulation.
Despite efforts begun through legislation like Dodd-Frank and agencies like the Consumer Financial Protection Bureau (CFPB), ICS Risk Advisors has found that reform has been slow to take effect on Wall Street. After careful examination of milestone events like the rogue trading scandal at UBS and the meltdown at MF Global, ICS Risk Advisors concluded that reform needs to proactively begin in-house. The Banks that have been successful in 2011, and have avoided major problems, serve as examples of what can be accomplished when strong internal risk management programs are implemented.
“As long as there is legislation there will be an effort to circumvent it within financial institutions,” said George Mark, President of Internal Audit at ICS Risk Advisors. “Risk has always been an inherent part of profit in finance, but that doesn’t mean it can’t be managed properly. There is a belief that regulation is choking progress, when in actuality we’ve found the lack of proper risk preparation to be far more detrimental.”
ICS Risk Advisors creates, implements and maintains tailored compliance, internal audit, and risk management programs for clients spanning from the world’s leading financial institutions to community banks. Based on tremendous industry need, the company is projecting a 15%-20% overall growth of its business in the next three years. ICS Risk Advisors is also hiring, and plans to increase its staff by 30% in 2012.
“Most financial institutions aren’t equipped to handle the intense strain increased regulations can place on operations,” said White. “Therefore, more companies are turning to ICS Risk Advisors to either help them remain compliant or build risk management programs that will keep them out of trouble. This increase in business means we’re able to continually hire the very best the industry has to offer.”
For more information on ICS Risk Advisors, please visit: http://www.ICSriskadvisors.com/.
About ICS Risk Advisors
ICS Risk Advisors is a full-service risk advisory firm for financial institutions. Founded by former Big Four Partners and Federal Regulatory Examiners, our strength comes from combining our talents to deliver risk management solutions.
With headquarters in New York City and offices across the country, ICS Risk Advisors creates, implements and maintains tailored compliance, internal audit, and risk management programs for clients spanning from the world’s leading (largest) financial institutions to community banks. Our seasoned professionals have deep industry knowledge in all risk management areas.
Our philosophy is to build lasting relationships and create value-added solutions. Our value proposition is the confidence of more. That’s what years of experience with one single focus will get you.
