What training do you provide for your bank directors?

In another thread, Andy indicates all of his bank's formal policies get an annual board review. Obviously, its a great practice, it assures that bank personnel keep them up to date. However, it's also a kind of "training in drag" for bank directors, assuring that they have an opportunity to ask questions and eventually figure out how the bank works.

In my experience, directors are the most underserved training population in the bank. Yet, I've seen more imagination and innovation in these pages than I had witnessed in my pre BOL career; some of you have to have some great ideas to share.

I provide training for the board on any new regulations. For instance, I provided the same training to them on privacy as I did the staff. The only thing they don't like is to have to take the quizzes!

Okay, Ken, don't laugh at me-I actually sent the FDIC's little "Pocket Guide for Directors" as an agenda item in a board packet about a year and a half ago when we added two new members. I figured this would be an easy way to bring everyone into remembrance of what their jobs were. I thought this was simple, short, and to the point and it has some really clear explanations of what the directors' responsibilities are. And we also educate any BOD level committee memebers as we meet on each topic that is presented in each committee meeting (by discussion, nothing formal). I think our board members actually read the policies and audits we send because I get questions that indicate they must have read something to come up with the questions they do. I even thought about having the FDIC come and do training, but they don't offer a board level training program anymore (or didn't when I checked on it). I doubt they will any time soon, with their restructuring process. I found out the Fed does offer a program, but we are not Fed members and they are not offering this type of program in our area anyway, so I guess we are just doing what we can as we can. It would be nice to have a more formal program, but I think most folks have enough difficulty working around the meeting schedules as they are, without adding more to their plates. Good luck and maybe you will get some useful responses.

We currently do not have a formal board training program on compliance. However, in my quarterly compliance program update to the audit committee, I enclose current regulatory issues allowing them to get a summary of what is happening. In addition I provide them with minutes on my subcommittee meetings to keep them abreast of what is happening in all of the departments of the bank (ie: deposit operations, lending, advertising, branch operations, etc). As for a formal training program, I dont believe any one company designs classes specific to board members. You may want to consider an outsourcing company or consulting firm.

Good luck with your future board trainings.

Ken, A couple things that we have found helpful and received positive feedback on were:
1. A Monthly Newsletter for Directors - executive type summaries of the "Hot Compliance Topics", including a synopsis what we are doing in regards to that issue. Maximum length 1 page - two sided.....short, to the point, high level overview stuff.
2. Current Events - Newspaper articles, Compliance and Internal Audit magazines seem to have lots of these that could be referenced for their use.
3. Quarterly Training geared specifically for them - on topics like Reg O, Bank Bribery Act, BSA, Privacy, Identity Theft, FRB 23 A & B- transactions with Affiliates, Equal Treatment, Unfair and Deceptive Practices. We set up a schedule at the beginning of the year, and can supplement it as needed.
4. Plus, passing along any training that is offered locally that may interest directors. We even had a speaker at a recent officers meeting, which included directors, one of the compliance topics was Identity Theft.

Don't forget FRB 23 A & B are turning into Reg. W, 4-1-03.

Gee Ken,
The attitude I get from the senior officers (excluding me, of course) is they (the board) won't read it, blah blah blah, and they just tolerate me at the annual meeting handing out pertinent board info (regarding their responsibilities); so therefore, I am going to give them a quiz... any advice??
I dislike the idea of annoying them, but I do wonder if they truly know their responsibilities..

Executive recaps yes, a test, no. See what the Director's Guide wants them to know.

They have a bank to run and and questions given to them would need to be at their level, not the average employees. They would address concepts and a view from 10,000 feet. They do different things and depend on us for "ground level" observance. Ensure the questions are appropriate to the responsibilities.

CRA training, covering the basics and the Sunshine Provision, is important. Sunshine in particular could be an issue if a director or senior staff are approached and don't act appropriately.

I take candy to those trainings too

Ironically, I was approached by my CEO asking for
me to do a compliance presentation (15-20 minutes) at our
Board's "spring retreat". Any suggestions?

mcarollo,
I did not laugh...the Pocket Guide is the foundation for any training that you do. Handing it out when two new members joined the board was smart - it takes the pressure off existing board members who might be in at least as much need of the infomation. For those who are unfamiliar:
http://www.fdic.gov/regulations/resources/directors/index.html

Maria: You might want to focus on insider rules, like Reg O and Reg W, as well as areas in which the Board has to approve policy, like Information Security, Bank Secrecy and (maybe some day) CIP.

Ken,

Board training for compliance issues is performed annually by an outside consultant. (The use of an outside consultant makes them pay more attention.)

They are also updated monthly through my attendance at the board meeting itself or through a board committee (i.e., audit).

Thanks, I already did Reg O (last year) ,
but maybe W is a good one, thanks.

Last year as in 2 months, or last year, last year? I like an annual refresher and it is a good time to remind them of the Code of Ethics, reporting requirements, OD and borrowing restrictions and those little things we do to keep them out of jail and from having to bring their checkbooks to a special meeting with the regulators.

Andy, Last year as in October (the fall retreat, and
I don't mean re-treat!)

Too soon to do it again. But hey, you get points just for all the Director training time. That in itself says a lot.

Ken, thanks for the feedback. I was thinking to myself at the time that maybe something in a form other than the ususal black and white pages found in the board packets would be more interesting and make the directors curious enough to read it. Anything to help folks who don't just live for this stuff to be more interested.

Wait, what do you mean, "people who don't live for this stuff"? Doesn't EVERYONE live and breathe compliance????

Like everyone else, I provide current issues training, and annual Reg O training. The OCC also has a director's handbook. In addition, our audit firm (outsourced internal) provides bi-annual director's meetings, allowing our directors to interact with other bank's directors, and giving them some current information on director's issues. I really like that concept - directors are the only group of bankers who don't have much access to their peers.

I've been writing a newsletter for bank directors for 12 years and recently launched a website companion to it that includes some free information you may find helpful. See the BOL launchpad section for the link to the website, www.bdbonline.biz. Steve Cocheo, executive editor, ABA Banking Journal, and editor, Bank Directors Briefing

Great resource, Steven! I'll definitely pass that along to my Board members. Thanks.

Nice site, Steve. Thank you!