An Increasing Focus on Nonfinancial Risks

December 11, 2019

This issue of Supervision in Brief discusses the emergence of nonfinancial risks and steps that the San Francisco Fed is taking to deepen thinking in one sector of this field. The overall financial health of the industry has allowed bankers and bank supervisors alike to better assess and understand a number of increasing nonfinancial risks, such as cyber security, cloud usage, and data governance. We believe that the San Francisco Fed is particularly well positioned to serve as a thought leader in the nonfinancial risk space more broadly, but specifically with regard to fintech-related developments. To expand our knowledge in this area, our fintech team recently partnered with FinRegLab to host a Data Symposium, The Role of Consumers in the Data Ecosystem. The Symposium was a valuable step toward establishing a shared vision on the importance of protecting consumer financial data and supporting a strong ecosystem of innovation, competition, and collaboration among traditional financial institutions and fintech firms. You can read more about this event in the SF Fed Blog, as well as in a full report on the Symposium, which will be released early next year.