Small Banks Can Strengthen Risk Management Simply, Easily and Cost Effectively

For many community banks risk management costs can eat up more and more of the annual budget.  There is a way to quickly strengthen risk management and not increase the budget at the same time.  It also just happens to be something that all stakeholders will appreciate even if they don’t notice the impact.

Yes, we are talking about Policy Risk Management and four easy steps any bank can take regardless of budget, staffing or other limitations. Follow these four simple steps and immediately strengthen your risk management infrastructure and engage more employees in managing risks.

1. Assign key policies an owner. This person will ensure that policies are written (or updated), vetted and approved annually. More importantly, this person will also assure that policies and procedures are synched.
2. Reconcile policies to procedures and processes. There is no need to wait for an internal or external audit to highlight gaps.  The policy owner can do this timely.
3. Leverage training tools. Each policy can be supported through webinars, podcasts, self-paced training or formal training. Use all the tools available and use them often.
4. Ensure that Quality Control tests controls often so that policy adherence is confirmed. This will promote understanding and highlight gaps that can be addressed before problems arise.

These four simple steps will add vigor to your risk management process and is a real confidence boost for stakeholders.