Justifying the Cost of Compliance
The year 1996 has been filled with floods. Loans secured by properties located in flood hazard zones that were covered by flood insurance prior to the flood are still good loans, thanks to alert compliance managers. Next time you meet with your bank's management, take credit for what your compliance program's efforts saved the bank in losses. Whether or not your area suffered from floods, this is a good time to remind your management that when a bank fails to comply with flood insurance requirements, the bank effectively becomes the insurer. The smart bank avoids that type of liability with a good compliance program.
Copyright © 1996 Compliance Action. Originally appeared in Compliance Action, Vol. 1, No. 14, 9/96
First published on 09/01/1996