Risk Management Solutions Group

Our Enterprise Risk Management framework consolidates and improves risk reporting to help community and mid-sized banks identify key risks within their institution. We also work with you to implement the proper controls and eliminate these risks. By collaborating in advance of required annual bank exams, RMSG can help you avoid regulatory criticism, fines, or other penalties. In addition, we can assist with responses to regulatory inquiries and help resolve regulatory issues, including the preparation of detailed action plans and results tracking.

RMSG can further collaborate with you to assess, develop, implement, and determine the sustainability of core Enterprise Risk Management components, including:

• Risk culture
• ERM framework
• Policies, standards, and procedures
• Governance routines
• Risk taxonomy
• Risk appetite
• Risk identification
• Reporting

RMSG helps community and mid-sized banks develop the framework and structure for roles and responsibilities to ensure operational risks are comprehensively defined, identified, measured, controlled, and reported. Our operational risk management solutions help your bank identify overlooked issues and control failures—whether small or large—that can harm a company’s bottom line and reputation.

Key elements of your bank’s operations that the RMSG team will assess from a risk management perspective include:

• Operational risk governance
• Policies, standards, and procedures
• Roles and responsibilities for the Three Lines of Defense Risk and Control Self-Assessments (“RCSA”)
• Governance routines
• Risk assessment(s)
• Risk and control identification
• Monitoring and testing development and execution
• Issue management
• Reporting
• Stress testing and analytics
• Due diligence for new products, services, and activities

We build specialty assessments and reviews custom-tailored around a community bank’s specific risk profile. While some firms offer boilerplate, one-size-fits-all solutions, we analyze how your assessments are currently performed, who conducts the work, and how findings are implemented. This proactive methodology helps solve your existing compliance concerns and helps eliminate risks prior to your bank’s official exam.

While not an exhaustive list, RMSG will offer insight into the following components of Compliance Risk Management:

• Board and management oversight
• Policies, standards, and procedures
• Risk assessment
• Monitoring and testing development and execution
• Complaint management
• Change management
• Issue management
• Reporting
• Training
• Outsourced Chief Compliance Officer services

Our credit risk management services allow banks to better understand the adequacy of their capital and loan loss reserves to maintain credit risk exposure within acceptable parameters. We will perform a gap assessment, policy and procedure review, independent portfolio review, and even outsourced underwriting to ensure banks have the appropriate protocols in place. Our goal is to reduce your workload, increase your bottom line by resolving any weak procedures related to credit risk, and implement correct procedures to limit borrower defaults.

Our credit risk management support includes, but is not limited to, the following services:

• Credit underwriting outsourcing
• Loan review/credit quality
• SBA quality assurance review
• Troubled assets/special mention workout
• Annual credit reviews
• Portfolio assessment

We will perform BSA/AML gap assessments and partner with you to develop a detailed, customized action plan that remediates regulatory concerns and any program gap. We also ensure your bank is adhering to Office of Foreign Assets Control (OFAC) requirements.

In addition to those already mentioned, our financial crimes management services include all the following and more:

• Independent assessment to help determine appropriate courses of action
• Current BSA/AML compliance program evaluations
• Training on policies and procedures
• BSA/AML internal control reviews
• Customer due diligence processes

Our model risk management services align model investments with business risks and priorities. Our approach examines model risk (creation, implementation, and use or application) and its impacts on other risks (compliance, operational, reputation, etc.) across your organization. Altogether, our program includes policies, processes, personnel, and control systems appropriate for the size and complexity of your specific institution.

We can provide your bank with an end-to-end model risk solution that includes both regulatory and quantitative reviews. The following components are also included in our model risk management suite:

• Model governance
• Model development, implementation, and use
• Model validation
• Third-party risk management
• Systems

Strategic partnerships between fintechs and community banks are rapidly multiplying. As a result, it is more crucial than ever for banks to ensure they have innovative risk management resources to avoid potential oversite failures.

RMSG can perform the necessary due diligence on a bank’s fintech partner to counter the risk of compliance or regulatory issues. The industry has experienced several in recent years, due in part to the newness of fintech/bank partnerships. Nevertheless, recent public enforcement actions and heightened regulatory scrutiny underscore the importance of having a proper risk management framework in place.

Our risk management methodology ensures:

• A positive relationship between banks and their fintech partners
• Banks comply with new regulatory restrictions from federal agencies
• Fintechs provide information to confirm their quality, sustainability, and key risks and controls
• Comprehensive documentation of fintech partnership at all stages of the relationship
• Contingency plans for remediation or loss of a significant partnership

RMSG can forge custom solutions that match your exact needs and specifications. Many of our seasoned professionals are former regulators themselves. They understand the ins and outs of the regulatory landscape like few others and will assist you in any way possible. Reach out to us today. All our initial consultations are free, and there is no commitment, pressure, or obligation.