The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) recently delivered a report outlining the key challenges faced by the agency in the coming years. The report focuses on problems that the FDIC will need to address to successfully do its part in the promotion of financial stability and greater public confidence.
The Top Management and Performance Challenges Facing the Federal Deposit Insurance Corporation report represents the OIG’s annual assessment of that agency’s most pressing challenges, and examines the progress made in addressing those problems. This year, the OIG cited nine challenges that involve risks to “mission-critical activities” and the processes and programs that contribute to the agency’s ability to execute its mission.
Top risks cited by the OIG include preparation for banking sector crises, the mitigation of cybersecurity vulnerabilities, managing supervisory risks related to digital assets, and a greater effort to foster more financial inclusion for underserved communities.
The OIG also identified the need to improve agency IT security, address changes in its workforce, and enhance data collection, analysis, and usage. It also recommended that the agency strengthen its supply chain and contracting management and work to implement more effective governance.
Facing challenges in an evolving economic environment
The report noted the special role that the FDIC plays in maintaining a stable financial sector in the United States, citing the fact that the agency is responsible for insuring assets worth roughly $10 trillion. According to the OIG, numerous economic and policy concerns pose continuing risks to the financial system—risks that the FDIC will need to consider as it continues its work to address the challenges outlined in the report.
Among the issues cited by the report are the continuing problem with rising inflation, uncertainty over the war in Ukraine, new technologies and cyber vulnerabilities, and the need to manage digital assets. The report also noted that the FDIC’s working environment has become more of a hybrid model at a time when more personnel are retiring or resigning.
You can read the entire Top Management and Performance Challenges Facing the Federal Deposit Insurance Corporation report here.
