Independent Banker - August 2018 - 20

PORTFOLIO
top priority. An opening meeting is imperative to create a
comfortable, professional environment. Ensure the exam
team has the facilities it needs, and lay the groundwork
conducive to discussion and negotiation.
Boccia recommends telling the bank's story, including
bank background, types of products, changes since the last
exam, compliance preparation and training conducted to
address new or changed regulatory requirements, completed
projects or progress of those in process, and introducing the
designated POC and team contacts.
Bedsole structures communication to help manage the
flow of the examination. " Overall, don't just let the exam
happen. A regular check-in gives me the opportunity daily to
see if the examiners are drawing the wrong conclusions from
the information we've provided, or if there is an unexpected
issue that I want to head off. "
Boccia says if surprises or self-identified issues occur,
community bankers should take immediate corrective action,
if possible, or develop a plan and a target for completion,
and communicate that with the exam team.
Grooms, too, uses examiner check-in meetings, rather
than risking emails lost in the sea of email traffic everyone
battles. He and his team keep notes of the discussions and
have found them valuable, especially for items like directions
" Work you do each
day determines the
ultimate outcome. "
-Jim Bedsole, BankSouth
from examiners that do not become part of the examination
report but may be noted in the exam workpapers. Notes
also help keep tabs for corrective actions or enhancements
following the exam.
7 tips for a successful exam
Prepare
12 3
Respond
every day
promptly and
communicate
about delays
Manage the
project and
process
45 6
Prepare
bank
representatives
Review all
materials before
providing them
Choose your
battles and
discuss issues
thoughtfully
7
Employ professional
courtesy, respectful
rhetoric and
business acumen in
each exchange
Professional, productive communication is key to mitigating
confrontation and obstruction. " You can't take a bad
situation and manage the exam to a good outcome, " quips
Bedsole, " but, I have seen times when bankers take a notso-bad
situation and mismanage it to a terrible outcome. "
New joiners
Expect that examiners who are new or new to your bank will
need more coaching and explanation than those familiar with
your business model and practices. When an issue arises,
request more information from the examination team and
use the best bank representative available to more quickly
and succinctly resolve it. Whatever approach you choose, be
selective about who goes before the examiners. An offsite
meeting of bank personnel may be helpful to prepare for
the discussion.
Employ the same discussion and documentation protocols
to reap the most beneficial outcome from the wrap-up. Ask
the exam lead for a preview to ensure the right people are
included in the exit meeting and to allow them to prepare.
It is to the bank's advantage to resolve issues before the
exam team leaves the bank and preliminary findings are
committed to a written report.
Compliance actions taken every day and your community
bank's management of the next compliance examination or
audit will determine the results. What are you doing today
to prepare?
Mary Thorson Wright, a former Federal Reserve examiner, is
a financial writer in Virginia.
20 Q ICBA Independent Banker Q August 2018
Independent Banker - August 2018

Table of Contents for the Digital Edition of Independent Banker - August 2018
