COVID-19 continues to introduce new challenges for businesses and consumers. While the second quarter saw small gains in economic recovery, market conditions and unemployment continue to remain depressed compared to previous years. However, historically low interest rates suggest loan yields will increase and, in turn, provide an opportunity for financial institutions to capitalize in this low-interest lending environment.
While the overall long-term impact remains unknown, it’s critical financial institutions are not just thinking about immediate consumer and business needs, but adopting innovative solutions and adjusting long term to solve challenges brought on by the pandemic. There’s a growing need to readdress a comprehensive risk strategy in order to evaluate how challenges brought on by COVID-19 can be handled in 2020 and beyond.
Risk Mitigation Strategy #1: Monitor Your Portfolio
The industry is rapidly changing with updated regulatory guidelines, state mandates, and COVID response protocols. There are many moving components to monitor to ensure portfolio information is accurate and compliant.
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