Bank Director's 2026 Risk Survey: AI Exposes Threats, Knowledge Gaps

Bank Director's 2026 Risk Survey delves into bank leaders' concerns around artificial intelligence, cybersecurity, credit risk and more.

NASHVILLE, Tenn., March 31, 2026 /PRNewswire/ -- Today, Bank Director, the leading information resource for directors and officers of financial institutions nationwide, released the results of its 2026 Risk Survey, sponsored by Baker Tilly. The results show bank leaders are balancing rapid adoption of artificial intelligence with heightened concerns about fraud, cybersecurity oversight and rising credit risk.

According to the survey, 79% of CEOs, board members, chief risk officers and senior executives say fraud is a top risk for their bank this year. And when it comes to AI, bank leaders are most concerned about fraud and scams targeting their customers (84%) and their employees and organization (77%); the competitive threat from other financial institutions and nonbanks (38%) ranks a distant third.

Survey respondents broadly indicate at least baseline levels of understanding of many AI-related topics, including machine learning, use cases for AI and data governance. However, a third say they do not understand agentic AI at all – a newer form of AI focused on autonomous decision making, highlighting potential governance and oversight challenges.

"Banks need a baseline level of understanding so everyone knows what's in play," says Mark Wuchte, Baker Tilly's financial services risk advisory leader. "Without that foundation, you risk people inadvertently using tools outside of the bank's oversight. Governance needs to be part of the conversation from the very beginning."

Changes in the broader competitive landscape due to AI and a rise in fintech firms seeking bank charters may also be feeding increased concern around strategic risk, Wuchte adds. Forty-two percent of respondents rank strategic risk as a top area of concern for 2026, up from 30% a year ago. Separately, 53% believe their bank could take more strategic risk.

"As the financial services landscape continues to broaden, it's no surprise to see that bank leaders have grown more concerned about how competitors could threaten market share," says Emily McCormick, vice president of editorial & research at Bank Director. "Banks will need to pursue their best path for success as use cases for AI grow clearer."

Bank Director's 2026 Risk Survey Key Findings:

• Regulatory Risk Recedes: Just 28% cite regulatory risk as a top concern this year, down from 55% last year. 44% say their bank saw heightened attention to liquidity planning or strategy during their most recent exam, while heightened attention to cybersecurity (37%) increased compared to 2025 (30%).
• Learning on the Job: 35% feel the examiner on their bank's last exam was inexperienced compared with previous exams; 38% believe their primary regulator was understaffed or otherwise underresourced.
• Cybersecurity Oversight: 79% of board chairs and independent directors say the board reviews and approves the bank's cybersecurity strategy set by management. Yet less than half (47%) say the board invited outside experts to speak to cybersecurity trends over the past 12 months.
• Identifying Cybersecurity Gaps: 89% of CEOs and tech executives say their bank conducted a tabletop exercise of its cybersecurity incident response plan over the prior 12 months. The most common gaps identified were overreliance on one individual or function (36%) and internal communications (35%).
• Credit Risk Concerns: The share of respondents naming credit as a top risk increased to 60%, from 51% a year ago. For commercial real estate, respondents cite concerns about credit quality (27%) and loan portfolio concentrations (38%).
• Risk Responsibility: 54% indicate their bank employs a chief risk officer. Among those, 81% say the CRO reports directly to the CEO, and almost two-thirds say the CRO interacts with directors at every board meeting.

Bank Director's 2026 Risk Survey provides insights into AI governance, fraud, cybersecurity oversight, credit risk and regulatory scrutiny. To view the full report and additional findings, please visit BankDirector.com.

About Bank Director
Bank Director reaches the leaders of the institutions that comprise America's banking industry. Since 1991, Bank Director has provided board-level research, peer insights and in-depth executive and board services. Built for banks, Bank Director extends into and beyond the boardroom by providing timely and relevant information through Bank Director magazine, board training services and the financial industry's premier event, Acquire or Be Acquired. For more information, please visit BankDirector.com.

About Baker Tilly
Baker Tilly is a leading advisory, tax and assurance firm, providing clients with a genuine coast-to-coast and global advantage in major regions of the U.S. and in many of the world's leading financial centers – New York, London, San Francisco, Seattle, Los Angeles, Chicago and Boston. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP (Baker Tilly) provide professional services through an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly US, LLP is a licensed independent CPA firm that provides attest services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and business advisory services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities are not licensed CPA firms. 

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are independent members of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with more than 50,000 professionals and a combined worldwide revenue of $6.8 billion. Visit bakertilly.com or join the conversation on LinkedIn, Facebook and Instagram.

For more information, please contact Bank Director's Marketing Associate, Emma McMillan-Zapf, at [email protected].

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SOURCE Bank Director