IT Services for Banks: 5 Steps to a Strong IT Risk Culture

Community and regional banks operate in an environment where technology, risk, and regulatory expectations are more interconnected than ever. While policies, controls, and audits remain an essential part of governance, culture is a critical factor in IT risk that many institutions overlook.

A risk-aware culture ensures that employees at every level understand their role when it comes to cyber risk. Well-designed controls play a crucial role in risk protection but often fail due to human lapses, including inconsistent execution, poor communication, and delayed reporting of potential threats.

As banks incorporate advanced technologies into their processes, risk no longer resides solely within IT departments. Every day decisions made by staff lacking proper IT risk training can lead to cybersecurity incidents, data integrity issues, and system disruptions, as they may not recognize their part in identifying and mitigating risk.

Regulators are increasingly focused on this issue. FFIEC guidance emphasizes governance, accountability, and awareness, expecting banks to demonstrate that risk management is embedded into daily operations, not confined to annual audits or policy reviews.

Many institutions find it difficult to embed a consistent, risk-aware culture due to:

Risk ownership is often ambiguous. IT teams may manage technical controls, while business units make system changes or implement new tools without fully understanding the downstream risk implications.

Risk management activities are triggered by exams, incidents, or audit findings rather than proactive monitoring and prevention.

Annual training often focuses on meeting minimum requirements rather than reinforcing practical decision-making and accountability.

Employees may hesitate to report concerns if points of contact for risk escalation are unclear or past issues weren’t addressed.

Creating a risk-aware culture begins with leadership buy-in and is supported through consistent involvement and reinforcement across the organization.

Assign accountability for critical IT risks, including cloud environments, third-party services, and access management. Ensure employees understand who owns what, the proper channels for escalation, and when to raise concerns.

Incorporate cyber risk discussions into regular meetings, change management processes, and project planning. Risk awareness should be part of how decisions are made instead of an afterthought.

Use real-world scenarios and specific examples to help employees understand how everyday actions and decisions can either introduce risk or strengthen controls.

Create an environment where raising concerns is expected and supported. Prompt follow-up on employee risk concerns reinforces trust and accountability, making employees more likely to report suspicious activity in the future.

Use audit results to highlight strengths and lessons learned, not just deficiencies. This helps reinforce shared responsibility and continuous improvement.

Banks that nurture strong, risk-aware cultures often experience fewer surprises during exams and see stronger alignment across IT, risk, and operations teams. More importantly, they build resilience that extends beyond regulatory compliance.

Risk management becomes embedded in the organization when employees understand the impact of their actions.

Clark Schaefer Consulting helps community and regional banks strengthen IT governance, embed risk awareness into daily operations, and align culture with regulatory expectations.

Learn more about how we can help your institution build a sustainable, risk-aware IT culture.