November 18, 2025

Rick Wolf, Managing Director of Secura/Isaac Group, spoke on the “Risk-Based Banking: A U.S. Perspective” panel at the Puerto Rico Insurance and Banking Association conference in San Juan on November 17. Rick discussed newly evolving U.S. risk management practices and supervisory trends in banking.

The panel focused on the following trends:

Following the 2023 collapses of First Republic, Silicon Valley and Signature, regulators were criticized in Material Loss Reviews and self-assessment studies as falling short in supervising bank oversight of interest rate risk and other important measures of safety and soundness that led to these failures. To avert further such criticisms, regulators are likely to have higher expectations from banks to self-govern more effectively at the board level and proactively manage risk in the three lines of defense. The use of risk appetite statements and other assessment mechanisms, even at smaller banks, should become more dynamic and serve as strong evidence that boards are discharging their duties.