Risk Assessments

Compliance Program Risk Assessment

FORVIS can conduct a risk assessment related to regulatory compliance. The primary objective is to provide a general assessment of the overall quantity of compliance risk and quality of compliance risk management. Typically, this is conducted first to establish a baseline of compliance thus assisting with ongoing appropriate scheduling from an ongoing risk perspective.

At the conclusion of fieldwork, FORVIS will detail the high risks in the industry, as well as bank-specific areas requiring management’s attention. During this assessment, our professional will assess:

• The bank’s mix of products and services regarding regulatory applicability and risk
• For high-risk areas, discuss with key personnel various processes for meeting compliance requirements
• The auditing and monitoring systems in place for compliance assurance
• Prior regulatory agency and internal audit examinations, as well as management’s responses to those exams
• Employee responsibilities and accountability for compliance and noncompliance
• If written compliance policies and procedures are inclusive and provide sufficient guidance to employees
• Compliance training programs and employee participation

Fair Lending Risk Assessment

FORVIS can conduct a risk assessment designed to look at the focus and size of the Bank’s fair lending/non-discrimination analysis. When conducting this risk assessment, our professional will follow guidelines similar to those used by the federal regulatory agencies and will consider:

• Advertising and Marketing
• Audits-Regulatory Examinations
• Community Reinvestment Act Performance
• Demographic Characteristics of the CRA Assessment Area including Branch Distribution
• Employee Training
• Exception Reports
• Loan Officer Compensation Practices
• Loan Officer Decision Making Practices
• Management Oversight – Internal Controls
• Policies and Procedures
• Pricing and Risk-Based Pricing
• Products and Services Offered
• Response to Complaints
• Second Reviews of Declined Loans
• Underwriting Standards