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#638203 - 11/14/06 09:00 PM Risk assessment for Trust department
leolady Offline
100 Club
Joined: Jun 2006
Posts: 101
Midwest-dead center
I desperately need some help in locating a matrix for doing a risk assessment for our Trust dept. We have had examiners in and they want it done before they return, which will be all too soon. I have been searching and have found info for practically every other branch of the bank, but not Trust. I will deeply appreciate any help I can get. Thanks!!

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General Discussion
#638204 - 11/14/06 09:27 PM Re: Risk assessment for Trust department
blue Offline
Platinum Poster
Joined: Jul 2005
Posts: 793
I can send you the areas we risk rate. Your state law, if you are a state bank, might drive your risks. Also, the FDIC manual is helpful. Please send me a PM with your email and I'll send the areas we rate.

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#638205 - 11/14/06 10:08 PM Re: Risk assessment for Trust department
leolady Offline
100 Club
Joined: Jun 2006
Posts: 101
Midwest-dead center
WE are not a state bank so that should help a little. My e-mail is jsteinman@hnbbanks.com. Thanks so much for the assistance
_________________________
"It takes two to speak the truth - one to speak, another to hear."
Henry David Thoreau

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#641341 - 11/22/06 05:48 PM Re: Risk assessment for Trust department leolady
KSK Offline
Gold Star
KSK
Joined: Jul 2001
Posts: 357
Kansas
I seriously doubt that you will find the type of matrix that you are looking for. The Trust area is a unique beast unto itself and the types of risks that the area may be exposed to will vary greatly on a number of factors.

For instance:
What types of products/services does your trust area offer? Personal, Irrevocable, ILITs, Agencies, Custodials, IRAs, ERISA Qualified Plans, Non-Qualifieds, etc.

What is your level of service? Does the bank assume the role of trustee with fully investment authority and responsibility?

Are you operating in an in-house or an out-sourced type of environment?

What is the experience level of the trust staff?

What is the level of oversight of the asset management area? Do you have regular internal audits of the area or do they tend to just skim over the trust area? Does executive management really understand the trust area and the inherent risks in the area?

I could keep going, but suggest that you might want to sit down and identify what you believe the risk areas are then interview management in that area to see if you share the same perceptions. Discuss where your perceptions differ than together put together a plan.

You might want to visit the Fiduciary and Investment Risk Managmenet Associations site at http://www.thefirma.org. This organization is devoted to the compliance and audit side of the fiduciary world. Also since you are in Missouri, you might want to see if there is anything available through the Missouri Banker's Association. I believe that they along with Kansas have an annual MOKAN Trust Conference annually.

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#643254 - 11/28/06 06:27 PM Re: Risk assessment for Trust department KSK
leolady Offline
100 Club
Joined: Jun 2006
Posts: 101
Midwest-dead center
Thanks a lot for your input. I am sharing all this with my Trust Officer and hope to get it done soon. I appreciate the help and that you took the time to reply. Bankers are a great bunch!!!
_________________________
"It takes two to speak the truth - one to speak, another to hear."
Henry David Thoreau

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