Regulators want financial institutions to follow their appraisal guidance, and also to recognize and avoid risks specific to their own institution. Operational risk takes in many other types of risk, and under some conditions a faulty appraisal program can inflate it.
This 60-minute webinar looks at those situations and how to avoid them. You'll learn how the Interagency Appraisal and Evaluation Guidelines stress risk assessment, how operational risk flows through the organization, including the appraisal function, and why it can be managed but not eliminated.
The session covers operational risk management (ORM) discipline and practice, the problems with traditional risk silos, the importance of transparency, the roles of people and technology, and warning signs of poor appraisal integration. You'll also get a framework to customize your bank's ORM program.
WHY SHOULD YOU ATTEND?
Banks assess credit and market risk well but often underestimate the risk of incomplete compliance with the interagency guidelines. Poor links between the appraisal function and other departments add risk, and many compliance and risk reviews overlook appraisals entirely.
This session suits community bank CEOs and presidents, credit administration and credit officers, chief appraisers, credit reviewers, lending managers and staff involved in appraisals.
AREA COVERED
- A framework and ideas for customizing your bank's ORM program
- The impact of the appraisal function on operational risk
- How an effective ORM program helps the appraisal function support loan production and reduce risk
- The role of people in operational risk management
- The impact of technology on operational risk management
- Warning signs of poor appraisal integration in operational risk management
LEARNING OBJECTIVES
- Explain how the interagency guidelines stress risk assessment in the appraisal program
- Define operational risk and trace how it flows through the organization
- Recognize that operational risk can be managed but not eliminated
- Apply ORM discipline and practice to the appraisal function
- Identify the problems with traditional risk silos
- Build transparency into the ORM process
WHO WILL BENEFIT?
- CEOs and presidents of community banks
- Credit administration officers
- Chief appraisers/appraisal function managers
- Credit officers involved in the appraisal function
- Credit reviewers and other credit side personnel
- Lending group managers
- Employees tasked with elements of the appraisal function
Banks assess credit and market risk well but often underestimate the risk of incomplete compliance with the interagency guidelines. Poor links between the appraisal function and other departments add risk, and many compliance and risk reviews overlook appraisals entirely.
This session suits community bank CEOs and presidents, credit administration and credit officers, chief appraisers, credit reviewers, lending managers and staff involved in appraisals.
- A framework and ideas for customizing your bank's ORM program
- The impact of the appraisal function on operational risk
- How an effective ORM program helps the appraisal function support loan production and reduce risk
- The role of people in operational risk management
- The impact of technology on operational risk management
- Warning signs of poor appraisal integration in operational risk management
- Explain how the interagency guidelines stress risk assessment in the appraisal program
- Define operational risk and trace how it flows through the organization
- Recognize that operational risk can be managed but not eliminated
- Apply ORM discipline and practice to the appraisal function
- Identify the problems with traditional risk silos
- Build transparency into the ORM process
- CEOs and presidents of community banks
- Credit administration officers
- Chief appraisers/appraisal function managers
- Credit officers involved in the appraisal function
- Credit reviewers and other credit side personnel
- Lending group managers
- Employees tasked with elements of the appraisal function