Items include
- 3 Webinars
- 265 BID Newsletters
risk management
Webinars
A new accounting standard means lots of changes, including how qualitative factors (Q Factors) apply. In this webinar, gain an understanding of Q Factors with CECL, and learn how they need to be applied under CECL compared to the incurred loss model.
In this virtual roundtable with a panel of community financial institution executives, we explored their journey of implementing CECL. Here are the strategies, lessons learned and insights that they can share with their peers based on their implementation journey.
Join PCBB as we work through live examples of different methods and evaluate the pros and cons.
Fraud conducted by customers themselves is growing — either by disputing legitimate card transactions or by lying on credit and loan applications. We explain the threat and how to combat it.
Though many organizations are pulling back their DEI efforts, some businesses have seen success from DEI and want to maintain their initiatives. We detail large corporations’ approaches and how to manage DEI-related risk.
Federal investigators continue chasing PPP fraud cases, and lenders are not immune from investigations. We discuss what CFIs can do to make sure their PPP loans were properly handled.
Planning for natural disasters is not new. But, with 100 climate- and weather-related global disasters happening between March and October 2020, the stakes have been raised. Since September is National Preparedness Month, it is a good time to review your business continuity plan with fresh eyes and communicate the steps to prepare with both employees and customers.
Bankers have been hesitant to support cannabis merchants despite the legal status of marijuana in many states. We give you an update on legislation, payment solutions, and trade group support that may indicate a changing tide.
A strong complaint-management program is essential. We cover four key areas as a refresher.
Disasters keep striking. Take the time to review your disaster recovery strategies before you might need them.
Banks need to vigilantly train on the signs of elder abuse. We provide additional resources to help.
A top Fed official has a message for banks that have been slow to start switching from using LIBOR as an index - get cracking. We provide the latest update on the LIBOR to SOFR transition.
About $30T in wealth is about to transition from baby boomers to their kids in coming years. As older customers pass away or move, their assets can easily get lost in the shuffle. We provide some tips to avoid unclaimed assets.
All banks should have the LIBOR-SOFR transition on their list and move it up in importance, as the 2021 deadline draws near. We give you some helpful tips.
Seniors lose $2.9B annually to financial abuse. We provide ways you can use your ALM process to help protect these customers.
A January 10th survey of economists by the Wall Street Journal finds on average a 25% chance of a recession within the next 12 months. So, what can you do to better prepare?
When it comes to targeting businesses that offer hemp products, things are shifting so bankers should be aware. A new farm bill legalizes hemp, but there are still challenges out there for bankers.
The latest Financial Stability Report by the Fed provides insight into borrowing by businesses. Some facts you may want to know.
Cisco reports that many small and medium-sized businesses can go out of business due to a cyberattack. How to help keep your business customers safe.
Vishing, the fraudulent tactic of phone calling for personal information, is on the rise. Make sure your bank customers aren't fooled.
Getting a loan from a large bank can be a challenge for a small business startup. This is good news for community banks.
When community banks evaluate commercial loan risk exposure, a key element is loan grade. Yet, not all banks have a uniform loan grading system. We present some interesting findings from an FDIC examination.
Community bankers know they need to prepare for disasters. But, in the wake of Hurricane Florence, we have some important reminders.
It is difficult for season business customers to manage through each season and it is not easy for their banker either. Fortunately, there are good approaches to minimizing risk when you lend to seasonal businesses.
Banks in states with legalized marijuana may not want to support these businesses. Tips to spot disguised cannabis customers.
Small-business loan delinquency rates have climbed a bit since their 2013 low. Some tips to manage this rising risk.
More than half of banks report that they are unable to combat and keep up with the rapidly changing nature of fraud schemes. Other highlights from a recent fraud survey.
Attacks on Domain Name Systems are rampant and can result in major problems. A compromised domain name can cause myriad headaches for both the company and its customers.
Bankers are more concerned about cyber fraud this year than in 2023. We look at top operational and cyber risks facing CFIs and suggest how to prepare for and prevent cybercrime.
We've finally reached the last article in our series of most popular BIDs of 2024. Now that 2025 has arrived, we're revisiting a cyber fraud topic that went from zero to sixty very quickly. Federal authorities have issued an alert about a financial scam called “pig butchering", in which victims are lured into investing in phony schemes, often involving crypto currency. The losses can be significant. We provide tips on how to identify these scammers, if they contact you.
A recent survey of financial institution executives revealed due diligence and oversight for third-party vendor cybersecurity is inadequate. We highlight key findings and provide strategies to strengthen vendor cybersecurity.
Malware and other cyber threats seem to have unconventional names. We examine the origins of malware names and how understanding them can help you prepare for cybersecurity threats.
Cybersecurity and fraud are bank leaders’ top concerns, according to Bank Director’s 2025 Risk Survey. We summarize some of the survey’s key findings and how institutions are responding to the challenges.
CFIs face an increasingly complex and evolving cyber threat landscape, with key risks related to advanced technologies, supply chain vulnerabilities, and sophisticated threat actors. We discuss strategies to future-proof your operations.
In response to CFIs’ more effective fraud prevention tools, criminals are now targeting CFI customers directly. We discuss four common scams and how CFIs can help their customers thwart them.
The new malware strain is so devious it can steal banking client credentials and drain assets before its presence is detected. CFIs should warn their customers about it before it’s too late.
OpenAI’s CEO says banks are too vulnerable to AI-powered attacks, and he fears a wave of fraud will sweep through the industry. Here are some defensive moves CFIs can take now.
Text message one-time passcodes are increasingly vulnerable to interception. We discuss the concerns and the alternatives CFIs should consider to boost security.
Deepfakes have been around for a while, but they are now increasing dramatically with costly effects. Deepfakes are fabricated pictures, videos, or audio using advanced technologies to replace a person in an image or alter a person’s voice. Let’s explore the latest insights from industry experts, how much damage deepfakes are causing, and how to protect your institution from three related scams.
Are you protected against drive-by skimming and supply chain website attacks? These can be hard to detect even with the usual cybersecurity measures such as firewalls, penetration tests, and security assessments. We explain how these attacks happen and what community financial institutions can do to mitigate the risk of these occurring to them.
OTP fraud is a new threat that community financial institutions need to know about. One-time passwords (OTP) are intercepted by cyberthieves allowing them access to financial accounts clandestinely. With two-factor authentication more widespread, cybercrime services have seen entry points and cyberthieves have jumped in. Here is a summary of OTP fraud and what you should do about it.
Cyberthieves are not slowing down. But, the Financial Services Information Sharing and Analysis Center provides an option to help. Thousands of financial institutions have joined an initiative to pool online intelligence information to fight back. Could your institution benefit from this too?
Multi-factor authentication has become more widely used by organizations with ongoing data breaches proving costly. Even community financial institutions have been hit. It may feel overwhelming to know how to start. So, we give you three considerations when deliberating on multi-factor authentication as well as a few options that are available.
Cybercriminals are bold these days, as cyberattacks remain lucrative for them. In 2020, more than 19K businesses and individuals lost over $1.8B through email fraud, more than any other type of cybercrime. The best defenses for financial institutions in the fight against business email compromise are employee training, KYC & suspicious activity tracking along with security tools and customer information.
Infamous cybercriminals caused the Colonial Pipeline breach and also hacked into three community banks within the same timeframe. Seven tips can help protect your institution, including: educating employees, limiting network exposure, backing up data, automatically updating devices, contacting the FBI if attacked, reminding customers regularly, and keeping resources handy.
Dark web sites are only accessed with encrypted software to allow stolen financial information to be sold to cyberthieves anonymously. It is a lucrative operation as these illegal sites have been known to make over $1B. Three ways to help stem the tide of stolen financial data are using Open Source Intelligence tools to search the dark web, keeping updated on new threats, and working with law enforcement.
Synthetic identity fraud costs financial institutions over $6B per year. This is a continuing problem that has been exacerbated by the coronavirus and affects the most vulnerable populations, such as children and seniors. It is critical to know how to identify and fight synthetic identity fraud with a layered approach and collaboration with other institutions. We provide some insight.
Passwords have long been the chief method of authentication for users. Yet, the human elements of memorization difficulty and affinity for convenience coupled with the new risks of the work-from-home environment have pushed several financial institutions to consider two-factor authentication. Is it time for your institution?
The average cost of a data breach in the US last year was $3.68MM and this number is only expected to get larger. Can a Security Operations Center (SOC) help your institution? We explore the options, including in-house, outsourcing, and SOC-as-a-Service to help guide you through this process.
Ransomware has been a growing threat. But, the greater reliance on digital access from the pandemic has resulted in an alarming spike in attacks.
BEC attacks have cost businesses $26B over the past 4Ys and cybercriminals keep stepping up their game. We share the latest information.
There are many security tools that can identify potential threats to your financial institution, but there are also many false positives too. We give you tips to help.
Suspected fraudulent transactions from mobile devices increased 138% since 2017. Staying on top of this is tough but important.
In a recent survey, 96% of community bank CEOs named cybersecurity risk as a top concern. With this in mind, we highlight the cybersecurity trends for 2020.
The FBI recently warned of attacks that bypass multi-factor authentication (MFA). Is MFA still a good solution?
Cyber criminals can now replicate digital fingerprints. We provide you with some tips to stay safe.
Experts say there are ways that banks can share helpful information about cyber incidents, without divulging too much and violating privacy laws. We explain how this could work.
A recent Accenture report describes how various threats could evolve in the future. We give you the highlights.
Mobile wallet technology is becoming increasingly popular. But, just like any technology rapidly on the rise, there are growing risks to consider.
As the remote work trend intensifies, it brings to the forefront the importance of strong cybersecurity practices. We provide some insight.
Synthetic identity fraud is difficult to track and halt due to its very nature. So, what can community banks do to prevent this dangerous fraud from happening?
Phishing is still a big problem. One of the best ways to educate people within your bank about the risks is to actually phish them on an ongoing basis.
According to McAfee Labs, data breaches rose 20%, in Q3 2018 vs. the same period in the prior year in the financial sector. What should you expect from cybercriminals in the future?
The exploitation of privileged users' access to a network is typically the main root cause of most large-scale breaches. Do you have a well-developed PAM to mitigate this big risk?
Bank features and criminal ingenuity are in an evolutionary arm's race, so it should surprise no one that criminals have figured out a way to turn ATM cardless technology to their advantage. We provide tips for your bank to stay safe.
Bankers know cybersecurity continues to be a top priority. To protect your bank, here are some tried and true ways to do so.
Cyberattacks happen 300x more frequently in financial institutions than other industries. A system of buddy banks was created to help. Are you Shelter Harbor-ready?
Botnets do have legitimate purposes, such as web indexing, but their dark side predominates. What community bankers should know.
Cybersecurity is serious stuff, but the FDIC's Cyber Challenge video series makes training a little easier for community banks. We give you the highlights.
Banks can always do more when it comes to cyber breaches and threats. We provide the latest insights from Verizon's 2018 Data Breach Investigations Report.
Many banks use text message authentication, but thieves are finding ways to hack it. We provide an update along with tips to keep you and your customers safe.
The rate of voice fraud has risen more than 350% from 2013 to 2017 with no signs of abating. What can you do to protect your bank from this new threat?
A recent FICO study shows 80% of consumers don't see the need for what they consider unnecessary security procedures. How to strike a balance between security and customer satisfaction.
Because of the increased security of EMV chip cards, robbers are turning away from bank card theft and moving directly to ATM theft. What your bank should know.
Now that hackers use sophisticated tools to detect versions of commonly used passwords, the National Institute of Standards and Technology (NIST) issued revised password guidelines. We have the update for you.
Before you start blaming your young bank employees' online habits for security issues, you will want to see what one survey found out.
You can do your best to keep up with the latest cybersecurity measures, but they aren't perfect. Cyber risk insurance could help protect you if and when that day arrives.
A recent report by the FBI's Internet Crime Center provides stats and examples of some real cybercrime risks out there. We give you the highlights.
The World Economic Forum projects the cost of cybercrime to businesses will hit $8T over the next 5Ys. We outline ways to stay safe.
Payroll phishing scams are on the rise. What your bank can do to protect itself and its employees.
When should community banks outsource IT security measures? We have some answers.
A recent survey finds more banks are feeling pressure in managing risk across all lines of business. How does your bank compare?
Ninety percent of cybersecurity budgets focus on securing the network while nearly 75% of all cyberattacks happen at the application level. The key threats in 2018.
Banks are recognizing that mitigating IT risk cannot be the sole responsibility of the IT department. Everyone, from the top down, at a bank needs to be involved.
Social media financial scams reached $420mm for the top 25 largest US banks. Tactics for banks to manage social media risk and still stayed connected socially.
There has been discussion about replacing the social security number. What could replace it and what are the ramifications for banks?
According to Chicago Fed research, there are 7 cyber threats that are the most common in community banks. Make sure you know them all and what to do.
In 1H 2016, 554mm records were compromised and the cyber thieves are getting more sophisticated. Some banks are turning to AI for help.
It’s important for CFIs to benchmark their performance against other institutions to gauge their CFI’s standing. We discuss criteria for selecting peers, tools for research, and what metrics to compare.
Bank bottom lines have started to slip. The challenge going forward is to maintain favorable results by actively managing risks. We unveil four threats to your profit in the current market and how they’re already impacting the banking industry.
Our readers asked us about rethinking security plans, attracting Gen Z customers, and customer profitability. We provide our insight on these topics.
Can Marie Kondo, the Queen of Tidying-up, provide bankers with important lessons on efficiency, performance and profitability?
LIBOR is the largest floating rate index in the world and underpins an estimated $200T in financial instruments. Today, we look at how banks can leverage its increase.
The results are in, and according to the Bank Director’s 2024 Risk Survey, the banking industry’s top challenges center around deposit pricing, liquidity management, and regulatory requirements. We review the survey’s findings to uncover the factors driving these challenges forward.
We invited Kendra Ramirez, CEO of KR Digital Agency and an AI strategy leader, to address common employee qualms regarding AI and how to create a robust AI policy.
The Federal Reserve has extended the ISO® 20022 implementation deadline for the Fedwire® Funds Service to July 14, 2025, giving CFIs more time to prepare. Benefits include enhanced payment efficiency, stronger fraud detection, and improved interoperability. With the deadline approaching, we explore how CFIs can use this extension to refine systems, train staff, and support business customers.
CFIs continue to face new and emerging risks, making the role of the CRO more important than ever. We outline critical skills for an effective CRO.
Establishing a system of checks and balances is a helpful way to reduce errors and detect and prevent fraud within your company. For many organizations, creating a segregation of duties that relies on multiple employees to conduct internal audits and ensure processes are being followed properly is critical for risk management.
While there is no shortage of risks that CFIs face, one way to enhance your risk management strategy might be in reshaping your board of directors. We give you tips on how to strengthen your board and reexamine the way the group approaches risk.
Risk managers have always been important at community financial institutions. However, the pandemic increased their responsibilities and made their roles even more pivotal. The top areas that are keeping these managers busier than ever include: enhanced risk modeling, cybersecurity & fraud, increased exposures through fintech partnerships, more regulation, and the evolving nature of the role itself.
Liquidity risk management is always important for bankers, but especially during times like these. We highlight three key considerations.
Financial institutions are among the most vulnerable sectors to employee misdeeds, ranging from embezzlement to taking bribes for compromising actions. We discuss what those acts could look like and precautionary steps for prevention.
Major financial institutions like Bank of America and TD Bank illustrate the risks of falling short on anti-money laundering oversight. We look at how CFIs can learn from their missteps to strengthen compliance efforts.
We invited Tony Repanich, President & CEO of Shield Compliance, to share the benefits and challenges of serving cannabis-related businesses, as well as the industry’s outlook.
Recent enforcements highlight the cost of underfunding compliance. CFIs can stay ahead by embracing better compliance and AI solutions to bolster and streamline security.
A deep dive into three major factors that contributed to a smaller-than-expected capital decline in the 2025 stress test, and their broader implications for CFIs.
Shadow banking represents nearly 50% of global financial assets. With a lack of clear regulatory oversight and transparency within the sector, industry experts fear its growth could pose significant threats to the banking industry.
Encouraging employees to be vocal with feedback about your organization can lead to enhanced risk management. We reveal the psychology behind whether employees speak up about threats, and how you can make it easy.
Amidst heightened risks of money laundering and fraud, embedded compliance promises an additional layer of risk control that the banking industry has begun to embrace — including central banks.
Stress testing is vital for CFIs to assess their resilience, manage risks, and prepare for economic shocks in today’s uncertain market. We discuss scenarios to test for and approaches to stress testing.
Experts believe that CFIs have a heightened risk in the areas of BSA and AML compliance. We review these risks and how to identify them and suggest strategies CFIs can adopt to mitigate them.
While asset quality is strong, rising charge-offs in CRE and credit cards suggest it’s time for CFIs to revisit risk management strategies. We discuss the trend and responses to consider.
Following tradition, we're taking a look back at your favorite articles from this year as we BID adieu to 2024. Check fraud was a hot topic this year, and this BID from February started our foray into the conversation. Despite advances in technology, check fraud is on the rise across the US. Given the significant impact on CFIs and their customers, we suggest ways in which CFIs can reduce exposure to fraudulent activity.
Despite advances in technology, check fraud is on the rise across the US. Given the significant impact on CFIs and their customers, we suggest ways in which CFIs can reduce exposure to fraudulent activity.
As regulatory oversight of BaaS increases, CFIs need to be aware of the risks in their third-party relationships. We provide examples of BaaS flubs and how to avoid them.
The 2024 CSBS Annual Survey of Community Banks reports regulatory burdens, cost of funds, and cybersecurity as the top challenges facing community bankers. We highlight the survey’s key findings.
We talk with PCBB CEO Curt Hecker to get his take on strategic priorities for 2025 and beyond. We discuss fintech partnerships, risk management, leadership qualities, and more.
CFIs are making ground protecting themselves and customers against digital threats, but they also face physical security issues. Here’s what CFIs should do to assess and improve their physical safety.
P2P payments have become increasingly popular, but their most convenient attributes also make them ripe targets for fraud. We discuss tips CFIs can provide customers to avoid becoming victims.
Zelle is reworking its refund policy regarding fraud, a change that could potentially prove costly for CFIs. Before jumping ship from Zelle, however, organizations need to be aware of both the benefits and drawbacks of the service and how customers would react to losing the payment service.
Online fraud is on the rise, along with criminals’ success rate in duping companies out of money. Yet, small businesses are not allocating sufficient funding to fraud prevention. As CFOs begin to step up security investments, a major area they should focus on is their AR & AP processes.
The number of SARs filed by depository institutions regarding elder financial exploitation rose 67% between 2017 and 2020. As community financial institutions strive to stem senior financial abuse, this issue will only continue as the population is aging. We explain other factors in play and provide three defenses to combat elder financial abuse.
Senior citizens have often been the target of fraudsters. Yet, 2020 was a record year for this segment who was more isolated physically and more active digitally. Total fraud losses for seniors reached $1B last year and affected over 100K victims. Here are some of the top scams along with key communication points to pass on to your senior customers.
Employee financial crime can happen even in small businesses, such as community financial institutions. We provide some important reminders.
Occupational fraud is the biggest threat facing small businesses. What you and your business customers should know.
One online payments expert sees fraud growing at an even faster rate than digital sales. With all of this in mind, what can community banks do?
As banks try to help fraud victims, they may be hampered by the very customers they are trying to protect. Interesting insights your bank could leverage.
A recent survey found 60% of bank customers who experienced fraud discovered the issue before their banks told them about it. What can banks learn from this?
Discover how Enterprise Risk Management (ERM) can transform your CFI by holistically addressing risks and uncovering opportunities. Learn essential ERM framework components, risk assessment tips, and strategies for effective implementation.
Recent infrastructure failures emphasize the need for robust business resumption plans in banking. We look at eleven practical tips for enhancing business continuity and disaster relief plans, ensuring operational resilience and maintaining client trust during disruptions.
The Federal Reserve recently published the results of its 2023 pilot climate scenario analysis conducted with six of the largest US banks. We discuss some of the Fed's key findings.
CFIs of all sizes employ various strategies to successfully prevent and detect check fraud. But could another strategy be to go upstream and encourage business customers to adopt digital payments?
The Federal Reserve has released its 2024 stress testing scenarios: its primary tool to assess the largest banks’ fiscal health resiliency by estimating losses, net revenue, and capital levels under hypothetical recession scenarios. This year’s severely adverse scenario includes unemployment reaching 10%, a widening spread on corporate bonds, and dramatic declines in asset prices. We summarize the scenarios and determine how they can help CFIs devise their own tests to improve their capital planning and risk management.
Partnering with fintechs is a good way for CFIs to quickly enhance their online services and offerings. But such partnerships can also create unintended risks for CFIs, a reality that has spurred regulators to step up oversight in this area.
The OCC recently published its autumn statement on key risks facing the federal banking system. We summarize these risks and suggest ways CFIs can mitigate them to improve their institution’s resilience.
The Fed wants to make sure that all banks are aware of how the Fed Discount Window works and what it can offer during a crisis. Many small banks had problems using the Discount Window during the recent cash crunch. We summarize the Fed’s new tips to ensure a smooth Fed Discount Window borrowing experience.
This is the second part of our summary of the FDIC 2023 Risk Review. We take a closer look at the FDIC’s findings on potential credit risks for the banking industry and community financial institutions.
The FDIC recently published its 2023 Risk Review. In the first article of this two-part series, we summarize the report highlights related to the economic, financial markets, and banking industry conditions over the past year. We also discuss key market, operational, and climate-related financial risks and their potential impact on CFIs.
Responding to rising levels of CRE loans and recent bank failures, the FDIC has issued new guidance on risks. We review portfolio concentration red flags and risk factors.
Amidst a handful of bank collapses and ongoing economic uncertainty, the Financial Stability Oversight Council has proposed rule changes that would make it easier to regulate and classify non-bank organizations as systemically risky.
FinCEN issued an updated beneficial ownership information rule to more effectively deter criminals from using shell companies to launder money and perform other nefarious activities. How does this updated rule impact financial institutions? We delve into what we know so far.
Regulators in the US and abroad are taking a closer look at the climate-related risks that financial institutions face, and are preparing to enhance regulatory requirements on this front. In the first installment of this 2-part series, we’ll explore how climate risk is being approached by banking regulators around the world.
When bankers think of CECL, greater efficiencies may not come to mind immediately. Yet, as community financial institutions work through the CECL implementation they are realizing that CECL gives them an opportunity to achieve greater efficiencies for the future. In our podcast, Banking Out Loud, Andy Hines of Bank of Glen Burnie brought this up and we explore this topic further today.
Recently, the OCC released its annual report on the federal banking system’s condition. Although the average capital levels were good and the federal banking system’s liquidity ratio was more than 3x the historical average, certain risks in the industry have increased. We give you some of the report highlights, including three important areas of focus for increased risk.
While most big and mid-sized banks have already implemented the new CECL standard, many community financial institutions are waiting until their deadline of January 1, 2023. Yet, there is a lot to do this year to ensure you are compliant, including running CECL in parallel. Here are three guiding principles that we recommend to keep you on track as you perform your parallel runs.
The deadline for CECL has not been extended and January 1, 2023, is coming up fast. Are you ready? One specific area of focus for many bankers is using Q Factors consistently. While Q Factors aren’t new, their expected application in CECL is more involved. Here are four Q Factor best practices to prepare you.
CECL hasn’t been at the forefront of bankers’ minds given the pandemic. However, it is still happening and auditors and examiners will be asking questions about CECL. One area to think about is how CECL will affect your institution’s securities. We give you insight into CECL and HTM, AFS, and trading securities.
As we welcome in the new year, there are several regulatory areas to pay extra attention to. We cover COVID-19 flexibility, CECL implementation efforts, the LIBOR transition, CRA changes, and more.
With the pandemic, CECL may not be top of mind. So, we have three considerations to keep you on track.
The big banks are reporting on their CECL reserve. Community financial institutions can learn from what they are sharing.
Investors are already making adjustments to market valuations, based on how much they project CECL will affect the loan portfolio. Be prepared.
Like other financial institutions, FNMA and FHLMC must follow the rules of CECL. Yet, if these two GSEs adopt CECL compliance all at once, it could mean withdrawing billions of taxpayer dollars from the Treasury in 2020.
While CECL is delayed, that's not a reason for your financial institution to sit on its hands.
As big banks start finalizing numbers for CECL, other financial institutions can learn from their findings. We report on some of these findings.
As you analyze the risk of CECL and its impact, we offer our final AICPA article covering the key message--don't delay.
Today we discuss why it is important to have a new perspective with CECL, in the second article of the AICPA series. Check back next Wednesday for the third and final article.
The AICPA provided tips on CECL through its practice guide. We break it down for you in the first of three articles.
Check back next Wednesday for part two of the series.
For CECL, banks must assess risk over the life of a loan. Getting enough data for that can be a challenge. We provide help.
The purpose of Q factors doesn't change in the adjustment from Incurred Loss to CECL. However, there is a big difference in how the CECL standards treat Q factors.
FASB has made it clear that CECL is complex enough to propose extending the deadline. Knowing that, we provide you with a few things to remember as you assess your timeline.
As every banker has heard, FASB made a big announcement on CECL last week. We answer an important question many bankers are asking.
The American Institute of CPAs is planning to shed some light in its upcoming release of guidance on CECL. As the only bank in the AICPA Task Force Meetings, we share some thoughts on the main points covered.
Optionality can be challenging with CECL. We provide some tips to address the optionality of prepayments for your CECL calculations.
To some community banks, WARM looks like a simple way to extrapolate current loss rates over the required life of a loan for CECL. However, there are limitations to consider.
Although CECL has been around for some time, there are still questions around method selection. We walk you through it.
There is never a dull moment with #CECL. Get the latest FAQs published by the FDIC compiled based on ongoing questions, new developments and recent updates.
To implement CECL, your bank will need a dry run to see how your loans and allowances will fare under the new loss-accounting standard.
For bankers coming to the end of their CECL build phase and now seeing dry runs of reports, some may find dialog with investors picking up too. We explain how to set up your communication strategy.
We have recently heard that some banks are considering using Weighted Average Remaining Maturity (WARM) for their CECL calculations. Is WARM right for CECL?
There is a lot of information out there on CECL. We provide you with the Top 5 Things to Remember as you get ready for implementation.
As CECL draws closer, only 3% of community banks are ready to implement it. A new survey from RMA shows what banks are doing and covers some of their biggest concerns.
CECL is ticking closer. We provide you with some questions your examiners may ask around CECL during your next exam to prepare you.
CECL is coming and bank management will need to answer questions from its board of directors as they prepare. Here are some questions to expect.
One of the keys to CECL is understanding how each method works. We give you important information and resources on this.
It seems everywhere we turn these days, we hear about CECL. What your bank should know and how to prepare.
CECL is coming and community banks may need to look for outside assistance. What key attributes should your bank use to assess CECL vendors?
CECL and life of loan may lead bankers to consider shortening loan duration. But, that may not always be the best strategy.
Lately, bankers are trying to get their hands around the Current Expected Credit Loss (CECL) standard. Some tips to get you started.
Regulators published their latest CECL FAQs. Check out our quick reference of this document.
Climate change creates a carousel of risks for CFIs. In this follow-up to last week’s article on global climate risk financial regulations, we discuss US regulators’ plans to assess climate-based risks. We’ll also provide insight on how your team can mitigate these risks by predicting, strategizing, and implementing scenarios and strategies before disaster hits.
Managing further economic downturns, liquidity, and cybersecurity are just a few of the many concerns at the forefront of bank leaders’ minds, according to Bank Director’s 2023 Risk Survey. We summarize some of the key findings and suggest ways for CFIs to mitigate the challenges.
Social media and self-service tools that let customers access and move money both played a role in recent bank failures. While these types of technology are important parts of any CFI’s toolkit, they also add risk for organizations. We provide five tips to help manage these risks.
Financial institutions are turning to interest rate swaps and other derivatives to hedge against rising interest rates and to offer customers greater flexibility when structuring loans. As customers try to fix borrowing costs amid rising interest rates, swaps are something your CFI might want to consider.
It's been nearly four months since the yield curve inverted for the first time in nearly 12Ys. What should your institution be doing now to protect itself?
Implementing a hedging strategy involves many elements, such as determining the economic risks your bank faces. We walk you through it.
Valued for their flexibility, forward rate lock agreements can be customized to fit the requirements of both your bank and your borrower. We explain how.
Seven things you can do to help ensure your bank meets regulatory expectations for your ALM program.
Financial hedges are a bit like shock absorbers on a car. They can help reduce the volatility or bumps a bank may experience. But, you need a good hedging plan to ensure success.
Many community banks tell us that in this rate environment, plenty of commercial customers seek the stability of a fixed loan coupon. We show you how to do this as a win-win for both your bank and your customer.
During this period of increasing rates, it will be particularly important how a bank positions its deposit portfolio and sets its growth strategies. Some things to consider for your bank.
SIM swapping has increased sharply over the past years. In order to keep their customers safe, community financial institutions need to take proactive and preventative measures, including communicating with customers through two independent means on transactions, warning of red flags, and advising on safe social media usage.
RegTech can help CFIs handle compliance-related tasks, manage vendors, and arrange records so they’re easily searchable and accessible. We look at RegTech and its uses that you might consider for your own institution.
As AI becomes an increasingly important component of the financial world, regulators are stepping up their oversight of its risks. Now is the time for CFIs to look at potential risks that may exist within their AI programs and pre-emptively look for ways to mitigate any risks in anticipation of heightened regulatory oversight.
As regulators shift their focus areas for this year’s audits, CFIs should pay particular attention to the new areas that have caught the eyes of regulatory agencies. Knowing what each particular regulator is focusing can be key to acing regulatory exams.
The Financial Stability Oversight Council (FSOC) recently released its report on climate-related financial risk. It details how the council, including regulators, will be assessing these risks, which have become more integral with many of the activities of the financial institutions that they supervise. Here is an update on the progress of climate-related risk regulations, along with three ways community financial institutions can prepare.
Regulators are actively working on climate risk guidance to assist examiners during exams. Even without that, however, financial institutions are expected to address these risks. We provide you with three steps to better prepare you: review regulatory statements, analyze various portfolio risks, and check-in with third-party vendors and partners.
We uncover some thought-provoking points of interest from a recent risk management survey.
Today, we offer some thoughts around best practices to ensure your bank is not only following regulations--but also minimizing risk.
The new Part VI of the FDIC policy manual provides good insight before your next exam. We give you the highlights.
In this month's "Inquiry and Insight" issue, Steve Brown answers questions on new products, data loss prevention and SARs.
While ERM is not required for most community banks, more are choosing to implement such programs as a means to reduce risk and increase profits.
The Fed issued a regulatory letter recently that advised its examiners to use new Bank Exams Tailored to Risk (BETR) metrics in determining how deep to probe a community or regional bank. Could this help your financial institution?
The issue of what constitutes age discrimination has been and continues to be adjudicated in the courts and the issue is only likely to percolate more given the overall aging of the entire workforce. We provide some tips to stay compliant.
The Risk Management Association recently published the results of its latest regulatory survey. We provide you with a summary of the findings.
We provide you with some things to consider when evaluating the adequacy of your ALM process, as you prepare for your next regulatory exam.
In banking, stringent privacy laws enacted in the US and abroad are forcing banks to question what they need to do to stay in compliance. We provide 3 key tips.
Sharing BSA resources can be helpful for community banks. A recent interagency statement provides some options and steps to stay safe.
Anti Money Laundering Suspicious Activity Alerts at banks are soaring, almost doubling since 2013. We bring you the latest updates on this hot topic.
For many community banks, the tedious task of managing expectations is still time-consuming and inefficient. But new tools, techniques and technologies are emerging.
Hindsight is often 20/20. So, today we provide some key takeaways from The FinCEN 2018 law enforcement awards ceremony to better prepare you for what may be coming.
In the past 5Ys, the number of suspicious activity reports filed annually by US financial institutions has soared. Need some tips to help you fight AML? We have some.
The new California privacy law is being touted as the most stringent privacy law in the US. What do community banks need to know to stay out of trouble?
Community banks may be more inclined than their larger counterparts to use cloud computing services. But, it may be difficult to know where to start.
MIT research examines the effectiveness and cost of post-crisis bank regulation. We provide you with the highlights.
A recent crackdown on money laundering through marijuana and real estate provides important reminders for banks to carefully and actively manage their risk.
GDPR goes into effect on May 25th. How will it impact community banks in the US?
Is your bank doing financial modeling? If so, being too conservative can open you up to risks. We share some highlights on this from an FDIC paper.
For regulators, a focus on modeling efforts at banks has ramped up sharply in recent quarters. A review of the regulatory guidance on model risk management.
A new leverage ratio for community banks was created measuring a bank's tangible equity against the total of its average consolidated assets. This is good news. We give you the highlights.
FDIC announced that it would adopt the Fed/OCC guidance on Model Risk Management. What changes will your bank need to make?
Understanding BSA/AML with merger and acquisition activity. What steps banks can take.
Artificial intelligence (AI) is being used extensively throughout the financial industry. One area that many CFIs are finding AI especially helpful is risk management. In fact, Forrester has found that AI can increase ROI by 4x for risk management and efficiency. Here are five ways to use AI and increase your ROI.
The Federal Reserve just concluded its annual capital adequacy annual stress test with 33 participating banks. While regulators don’t require CFIs to run stress tests to assess their capital adequacy, the federal banking supervisory agencies indicate that they should have the capacity to analyze the potential impact of adverse outcomes, and particularly encourage this for CFIs with CRE portfolios. We provide four steps to help form the foundation of an effective capital planning process.
Economic forecasts for 2023 include a soft landing, stagflation, and recession. No matter which proves to be accurate, CFIs should prepare for the worst by assessing and taking steps to effectively manage risk.
Community financial institutions are facing increasing legal risks, including increased regulatory compliance, cyberattacks, and M&A complexities. In order to effectively manage this extra legal exposure, many bankers are increasing their legal support. We give you some options and steps to consider.
Trying to figure out how today’s balance sheet will respond to future events is more difficult than ever before. But, as the pandemic unevenly ends, this becomes critical. Test for volatility to anticipate structural weaknesses by examining the business model, back-testing for validity, and challenging assumptions.
Credit migration is always a concern for bankers and the uncertainty around the pandemic has only increased it. Deferrals seem to be less prevalent, yet criticized loans have increased. We look at the current credit migration trend to keep you updated.
With the ongoing pandemic, community financial institutions may find branch security more challenging. We give you three tips to conquer branch security issues.
As businesses are reopening, some are contemplating contact tracing. So, today we map it out and provide you with some of the risks.
While most financial institutions are doing all they can to manage new risks with COVID-19, here are a few that you may have overlooked.
Many financial institutions are evaluating their loan portfolios for COVID-19 effects on capital. We explain how to use economic data effectively when doing this.
With the need to move work off-site, community financial institutions have likely turned to cloud service providers to help. We highlight some of the risks and the need for cloud strategy.
With the current environment, you will need to view credit risk in a much different way than ever before. We give you three important steps to take.
We explain how to incorporate the impact of COVID-19 on your borrowers into your quarterly financial statements.
As cyber thieves become ever more sophisticated, identity fraud remains one of the banking industry's top security concerns. There are a couple of new tools to help.
Whatever your thoughts on climate change, severe weather patterns are affecting the real estate market. We provide you with an update.
Internet-based fraud is expected to hit $6T in 2021. We provide tips to help keep your online onboarding secure.
ATM skimming is still rampant. We bring you some new ideas and good reminders how to fight it.
Stress tests can help you identify your institution's vulnerabilities. But, not all stress tests are created equal.
While talk of a pending recession is nothing new, we highlight some things for consideration in preparation.
There has been discussion around the countercyclical capital buffer tool. Would it affect community banks though?
With the economic expansion in its 11th year, we thought we would revisit how far we have come since the start of this cycle.
The latest FDIC performance report showed strong numbers for community banks. However, doing more of the same may not be the best course of action.
Remote deposit capture has revolutionized check deposit. But, banks need to be aware of the risk.
In our new BID feature, "Inquiry and Insight", we provide questions from readers and bankers and do our best to give you relevant, insightful answers.
If you are like most community banks, communicating your appetite for risk consistently is a challenge. How can you ensure consistency in loan pricing at your bank?
While some community banks still manage their own ATMs entirely, an increasing number have hired armored carrier service providers to handle this. What are the considerations for each?
The FDIC is establishing an office of innovation that would help banks better partner with fintech firms. We provide you with the early details and how it could affect the current fintech landscape.
Every banker knows that a good business continuity plan is needed. But, when a power outage or worse happens, that is when you truly realize how prepared you are. We offer some guidance.
OSHA reports that 2mm American workers are victims of workplace violence every year. Although bankers do not show up in the data, it may be a good time to review some ways to keep your workplace safe.
In the world of biometrics, fingerprint identification for mobile bank accounts is on the rise. What you should know about fingerprint ID adoption for your biometrics strategy.
More customers are using their cell phones to videotape business interactions these days, which increases risks for banks. Are you mitigating these risks?
Money launderers have found another channel - online games. Although this is an unusual way to launder money, staying in the know is important for all banks.
Open Banking is seen as both a threat and an opportunity for banks. We lay out them both.
In April, credit-reporting agencies dropped all information on tax liens and court-ordered debts from consumer credit reports and ratings. How this could affect your underwriting practices.
While having a solid risk assessment plan for third party vendors is nothing new to bankers, what do you do if your vendor is acquired?
Third-party relationships are becoming even more important in an increasingly consolidating industry. We offer a few suggestions on how to manage third-party risk.
Real-Time Payments bring a new age for payments, as early as this year. But, as all new technologies, there are risks. Ways to mitigate these risks.
FDIC reports Q3 2017 was a good quarter for net income growth. Yet challenges are ahead for improving performance.
Community banks may want to fund mergers, acquisitions, and other expansions in 2018. Some ways to raise capital from institutional investors.
The FDIC reports that as of Q3, YTD community bank lending growth in Single Family Residential was $17B. Some high level tips to consider in this market.
As of March, 40% of the country's financial institutions registered nearly 4,900 dot-bank domain names. Why are so many banks migrating their sites?
A bank's reputation is an important intangible asset. Tips on how to keep your bank's reputation pristine.
Could poor energy efficiency predict commercial loan defaults? New study sheds some light.
