KPMG presents Ten Key Regulatory Challenges of 2023, featuring client perspectives, key regulatory recaps, and actionable steps to help mitigate risk. 

Regulators are relentlessly pursuing what they perceive to be “weak links” within risk programs and coverage. Regulatory agencies in 2023 will continue executing against their broad and ambitious agendas. Expect increases across supervision, enforcement, and investigations under both old and new regulations — even with a heightened discord in public policy and increasing judicial challenges to regulatory authority.

”Our clients in the financial services industry are already acutely aware that all regulators are increasing supervisory intensity (scope, exam findings, resolution times) and that attention to detail in implementation is crucial. To create efficient and effective structures is more important than ever” says Karin Sancho, Head of Financial Services.

“If your compliance organization is not proactive, well-funded and digital then corporate boards needs to act. With the recent developments in the regulatory landscape from US Governments boards might consider re-assessing the effectiveness of risk governance/accountability models and escalation processes within the company” says Andreas Halvarsson, Head of Risk Consulting.

We are delighted to issue our Ten Key Regulatory Challenges of 2023. You can also read more here:

1. Scrutiny and Divergence

  • Increased supervision and enhancement
  • Regulatory democratization
  • Regulatory divergence
  • Across the three lines

3. Transparency and Reporting

  • Reporting
  • Market structure
  • Protections and controls

5. Technology and Resiliency

  • Modern technology risk management
  • Technology resiliency
  • Operational resiliency

7. Fairness and Inclusion

  • Expanded "fairness"
  • Impact and "justice"
  • Human capital and DEI

9. Payments and Crypto

  • Regulatory authority and guardrails
  • Instant payments and controls
  • Disputes, complaints, and claims

2. Climate and Sustainability

  • Social and political discord
  • Risk management and governance
  • Scenario/stress test analysis
  • Investment/strategic markets

4. Data and Cybersecurity

  • Cyber risk management and governance
  • Data collection and use
  • Privacy

6. Credit and Capital

  • Capital shifts
  • Credit risk sizing and concentration
  • Effective compliance

8. Fraud and Financial Crime

  • Regulatory focus
  • Interplay with consumer protection
  • Evolving risks

10. Risk and Governance

  • Board importance
  • Risk management, mission critical
  • Mitigating misconduct