how to manage increasing data compliance issues in community banks
TRANSCRIPT
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
1
JOIN. ENGAGE. LEAD.
HOW TO MANAGE
INCREASING DATA COMPLIANCE
ISSUES IN COMMUNITY BANKS
An Excerpt from the RMA Credit Risk
Management Audio Conference Series
Speaker: H. Walter Young, Market Risk
Officer, Group Vice President, M&T Bank
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
2
JOIN. ENGAGE. LEAD.
STRATEGIES AND BEST PRACTICES
The following slides show
best practices and strategies for
community banks facing increased
data compliance and integrity
issues, once deemed as
“big bank issues.”
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
3
JOIN. ENGAGE. LEAD.
BEST PRACTICE: COMPREHENSIVE CAPITAL
ANALYSIS AND REVIEW (CCAR)
Best-practice banks have:
• transparent mapping between various
reporting taxonomies.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
4
JOIN. ENGAGE. LEAD.
BEST PRACTICE: COMPREHENSIVE CAPITAL
ANALYSIS AND REVIEW (CCAR) (CONT.)
Create a
hierarchical
“Rosetta Stone”
bridge between
each silo so
you can:
Integrate the
reconciliation.
And leverage the
business intelligence
across any dimension.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
5
JOIN. ENGAGE. LEAD.
BEST PRACTICE: COMPREHENSIVE CAPITAL
ANALYSIS AND REVIEW (CCAR) (CONT.)
CCAR can help
create an integrated
perspective.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
6
JOIN. ENGAGE. LEAD.
THE NEXT NEW THING TAKING CENTER
STAGE
CRO
requirements
OCC
requirements
CCAR
requirements
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
7
JOIN. ENGAGE. LEAD.
THE NEXT NEW THING (CONT.)
Integrated risk management
(and Basel III guidance)
suggests a need to view the
whole data enchilada.
Banks that evolve in this way should
have sequentially built the house from
the bottom up, leveraging staff,
hardware, and software to their
competitive advantage.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
8
JOIN. ENGAGE. LEAD.
THE NEXT NEW THING:
ENTERPRISE DATA MANAGEMENT (EDM)
Lending regulatory
compliance overlap
Data integrity
Data manage-
ment
Develop an EDM
program (an
integrated solution)
for handling:
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
9
JOIN. ENGAGE. LEAD.
EFFECTIVE EDM DELIVERS VALUE
TO YOUR ORGANIZATION
Create an
enterprise
service.
Treat banking
information as
an asset.
Manage/maintain
people, processes,
and systems
accordingly.
Value.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
10
JOIN. ENGAGE. LEAD.
EFFECTIVE EDM SUPPORTS YOUR
REGULATORY PROGRAM
EDM supports the regulatory
program by delivering the
required information and
controls (CCAR, etc.).
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
11
JOIN. ENGAGE. LEAD.
EFFECTIVE EDM IS USED ACROSS
DEPARTMENTS
Reduce
overall
expenses
related to
managing
information.
Increase the
value of
corporate
information
assets.
Position EDM
for use by
other areas of
the bank to:
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
12
JOIN. ENGAGE. LEAD.
EFFECTIVE EDM SOFTWARE
Smaller is better
Vertical software
choices are almost
always open source.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
13
JOIN. ENGAGE. LEAD.
EFFECTIVE EDM: TRANSITION FROM
TACTICAL TO STRATEGIC
Shift from
a tactical
CCAR
approach…
…to a
strategic one
for data
delivery and
data
governance.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
14
JOIN. ENGAGE. LEAD.
EFFECTIVE EDM: SCALE FOUNDATION TO
MEET FUTURE NEEDS
Bundle:
A common data foundation.
Common data governance.
Common controls.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
15
JOIN. ENGAGE. LEAD.
ABOUT RMA’S CREDIT RISK MANAGEMENT
AUDIO CONFERENCE SERIES
This popular series of ten audio conferences highlights
the current issues and trends in the credit risk
management arena.
Participants have the opportunity to hear from seasoned
industry experts and engage in lively discussions on the
topics that matter most today.
Learn more.
Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
16
JOIN. ENGAGE. LEAD.
SHARE THIS PRESENTATION
Visit http://www.rmahq.org for information on risk management
RMA is a member-driven professional association whose sole purpose is
to advance sound risk principles in the financial services industry.
RMA helps its members use sound risk principles to improve institutional
performance and financial stability, and enhance the risk competency of
individuals through information, education, peer sharing, and networking.
Become a member today.