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#1933618 - 06/18/14 03:50 PM Risk Management Committee
sjlee Offline
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Oklahoma
I have been blessed with the task of heading the Risk Management Committee for our bank. This committee is new. I have been reading about risk management and it is a little overwhelming when dealing with it on a bank wide level.

I'm struggling with a starting place and was hopeing for some suggestions.
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Risk Management
#1933673 - 06/18/14 05:04 PM Re: Risk Management Committee sjlee
osucpa Offline
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First start with a charter as to the purpose and structure of the committee.

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#1933689 - 06/18/14 05:43 PM Re: Risk Management Committee sjlee
sjlee Offline
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Oklahoma
I was told the committee is in charge of overseeing the bank's risk as a whole and will report to the board.
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#1933718 - 06/18/14 06:40 PM Re: Risk Management Committee sjlee
osucpa Offline
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Have the risk committee players been identified? If they have, set up an initial meeting and have a high level meeting. This will be a work in process, not completed overnight.
Last edited by osucpa; 06/18/14 06:41 PM.
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#1933815 - 06/18/14 08:24 PM Re: Risk Management Committee sjlee
deeb Offline
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MI
You will want the committee to consist of department that oversee the risk: fraud (losses), credit (loan), financial, regulatory, complaints (reputational risk), etc
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#1935029 - 06/24/14 02:10 PM Re: Risk Management Committee sjlee
HappyGilmore Offline
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Pulling people out of the ditc...
Originally Posted By: carotop3
I was told the committee is in charge of overseeing the bank's risk as a whole and will report to the board.


that's pretty broad...for instance, if the bank forgets to pay its electric bill, there is a risk you will be without power. If 5 people in a branch of 6 call in, you have issues opening the branch. Are the the type of risks you are talking about?

Start with the charter, as suggested, and define the types of risk you will be looking at...fraud, access, DDoS attacks, account takeovers, credit, wire, loss prevention to name a few.
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#1936131 - 06/27/14 03:36 PM Re: Risk Management Committee HappyGilmore
Carolina Blue Offline
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Lost in a regulatory fog
The idea for the Committee should be to monitor the risks (established by the Board) and report to the board when those risks are no longer within the tolerances (also established by the board). You need to have the head of each department involved. They will be the ones responsible for actually managing the risk and maintaining the controls. The Committee will meet to ensure the risks are being properly managed and ensure mitigation plans are created and reported to the Board when they are not.

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#1936695 - 06/30/14 06:18 PM Re: Risk Management Committee sjlee
Karen L Offline
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Somewhere over the rainbow...
We are also starting an official Enterprise Risk Management group to assess the different areas of the bank from compliance, operations, BSA, credit, HR, sales/customer retention, IT, finance/ALLL. If you google there are really great articles out there, but I am also struggling to find out what to identify. I would be interested in hearing your thougths on the areas of operations and BSA - those are mine.
PM me if you like I would be happy to share some resources I have gathered so far.
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#1937634 - 07/03/14 01:23 PM Re: Risk Management Committee sjlee
A_G Offline
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Does a member from audit sit on anyone's committee?

(albeit, in probably an advisory role)
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#1937846 - 07/03/14 06:20 PM Re: Risk Management Committee A_G
Reads Regs Offline
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Our SVP, Chief Internal Auditor is a member of our bank's Risk Committee.
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Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

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