Internal audit teams at financial institutions typically perform an enterprise risk assessment annually as part of their audit plan update process. The intent of this audit risk assessment process is to document the risks of certain activities or areas in the institution relative to other activities or areas. Why do auditors perform this risk assessment periodically? By understanding and documenting the risks, audit leaders can determine the cycle/frequency for each audit in the plan,…
This month’s roundup of recent news and developments in the world of governance, risk, and compliance (GRC) for financial services includes: The cost of financial crime compliance Heightened governance and risk management standards Top internal audit risks OCC supervisory priorities The future of banking Let’s dive in: Global cost of financial crime compliance for financial institutions exceeds $206 billion According to recent research released by LexisNexis in its annual True Cost of Financial Crime…
On July 27, 2023, the Office of the Comptroller of the Currency (OCC), Federal Reserve Board (FRB), and Federal Deposit Insurance Corporation (FDIC) issued a joint notice of proposed rulemaking that would significantly alter the regulatory capital calculation framework for banks with total assets of more than $100 billion and banks with significant trading activity. Community banks and credit unions will not be impacted. It’s believed that the new framework was proposed, in part,…
The September Regulatory Compliance Briefing includes recent alerts, advisories, and pending actions to be aware of this month. (more…)
Managers at smaller financial institutions sometimes feel left behind in the risk discussions and guidance from regulatory agencies. But there’s plenty of material relevant to community banks and other smaller institutions in the FDIC’s 2023 Risk Review, published in August. Credit Risk The Credit Risk section includes an abundance of material regarding community banks and smaller institutions, starting with the agribusiness material. The FDIC shares that “community banks hold 69 percent ($127 billion) of…