6. Identify which businesses can pass along their costs Being able to pass along at least some costs is key to surviving an inflationary environment. " Most small businesses will react well, " Hemsath says. " The key is to know which businesses can and can't pass along costs and at what point they price out where consumers can't afford it anymore. " 7. Strengthen customer relationships This is usually a given for community banks, but it's worth underlining how strong customer relationships add to a bank's ability to evaluate individual loan risk. Relationship managers who really know their customers may make all the difference. " Our customers don't just rely on us to facilitate transactions, " Beller says. " They rely on us to bring understanding. The credibility of that relationship has so much value in uncertain circumstances. " 8. Boost employee training Regular training on how to conduct stress testing, how to do forwardlooking cash projections and how to analyze financial statements ensures your community bank offers good guidance. 9. Solicit regulators' input- before the examiners arrive Both Hemsath and Beller believe regulators have been constructive and helpful in the recent economic cycle. Both community bankers take the initiative to talk with regulators outside of regular examinations. " It's a positive interaction, " Hemsath says. " They gather information from the industry and can be more effective as regulators. We're all in this financial system together. " Judith Sears is a writer in Colorado.