Good management practices and regulatory oversight are fundamental components of operating a financially sound institution. Both share the common objective–to identify and manage risk within the organization. For many institutions, it is not cost effective to hire staff with the expertise needed to meet their growing risk management demands. DD&F Risk Management Group has the specialized skills and knowledge to provide your institution with seasoned assistance in loan review, asset liability management, Bank Secrecy Act, consumer compliance, internal audit, information technology audits, and other specialized audit services and assessments.
Loan portfolio management is generally regarded as one of the most critical risk management functions for financial institutions. Credit risk generally presents the largest and most costly exposure and requires constant oversight and administration. A key component of any sound credit risk management program is the quality of the loan review function; it is consistently evaluated by examiners for its scope, frequency and adequacy as well as the qualification of those performing such reviews.
DD&F possesses the necessary knowledge and experience to identify loan underwriting, credit administration, and other lending related weaknesses that can lead to early detection and corrective measures while also meeting regulatory requirements. Many times we can provide these services at a cost that is less expensive than maintaining an internal loan review department or staff. We can also supplement your bank's own staff when limited manpower or time constraints exist or when internal expertise maybe limited in a particular area.
Asset Liability Management
DD&F offers services that help banks comply with the federal regulatory agencies Joint Policy Statement on Interest Rate Risk (IRR). This includes a review of your bank's interest rate risk management program including assessing the adequacy of oversight processes and practices, as well as, the use of IRR models. We can also evaluate the adequacy of liquidity and funds management practices including the establishment of acceptable contingency funding plans. Our professionals possess the necessary knowledge and expertise to assist you with your asset/liability management needs and to better enable your management team to monitor potential exposures, limit risks, and meet regulatory requirements.
Bank Secrecy Act
Bank Secrecy Act compliance continues to be highly scrutinized by the various regulatory agencies. This includes assessing the scope, frequency, and quality of a bank's BSA audit program as well as the independence and qualifications of its auditors. We conduct comprehensive reviews to help satisfy regulatory requirements and provide the necessary knowledge, expertise and independence required to ensure your BSA program and compliance efforts are consistent with regulatory guidelines.
Banks are required to comply with a variety of consumer protection laws and regulations that continue to evolve. Noncompliance can result in significant monetary penalties, litigation, and/or formal regulatory actions that can have a significant impact on an institution's reputation and financial condition.
DD&F assists institutions by performing comprehensive reviews that assess the effectiveness of compliance efforts and provide recommendations for enhancing compliance programs. We offer a wide range of reviews or assessments including lending compliance, deposit operations compliance, fair lending, and HMDA.
Information Technology Audit
Regulatory scrutiny and security breaches in the financial industry have made information security an increasingly important part of a bank's risk management program. The quality and scope of IT audits, as well as the qualifications of those performing these reviews are consistently evaluated for adequacy by examiners. DD&F provides the necessary knowledge, scope, and expertise to identify, address, and resolve information technology risks while meeting the necessary regulatory requirements. Our reviews include, but are not limited to, assessment of management oversight activities, information security practices, business continuity planning, vendor management practices, and electronic banking activities, as well as general IT operations.
Network Vulnerability Assessments
DD&F provides internal and external vulnerability assessments that are consistent with regulatory guidelines for testing the security of network systems and devices. These assessments are designed to detect technical vulnerabilities that could result in unauthorized access to the network and /or access to confidential or sensitive data. If such weaknesses are left uncorrected they can have a significant impact on your bank's reputation, operations, and profitability, and could lead to costly litigation or formal regulatory actions. Our professionals possess the necessary technical knowledge and experience to identify such weaknesses and assist your institution with corrective efforts in a costly and effective manner.
Internal audits are considered a fundamental and key requirement of a bank's risk management program that is continually assessed for adequacy by examiners. DD&F provides the knowledge and expertise to conduct reviews that are consistent with your bank's size, complexity, and risk profile. Many times, we can provide these services at a cost that is less expensive than maintaining a staff of full time auditors. DD&F can also supplement your staff when limited manpower or time constraints exist or when internal expertise maybe limited in a particular area.
Specialized Audit Services and Risk Assessments
The Risk Management Group of DD&F offers a wide range of other independent audits or assessments that are designed to meet various regulatory or other third party requirements. DD&F also has the flexibility to provide services that are specifically designed or customized for certain functions, operations, or to meet your financial institution's specific needs. Whether this entails the evaluation of particular markets, specific divisions, certain products or services, certain regulations, or individual processes, we can assess the strengths and weaknesses of your bank and make recommendations to minimize the opportunities for loss, litigation, or regulatory criticism.
Some of these services include:
- Trust Audits
- BSA Risk Assessments
- Audit Risk Assessments
- Enterprise Risk Assessments
- Automated Clearinghouse (ACH) Audits
Without a doubt, of all the decisions we made, working with DD&F was by far our best decision. They are responsive and have helped us achieve excellent grades from the regulators. We don’t have to wait days for them to return our calls. They have added more value to the organizational process and to our business since we opened than any other third party provider. We use them for everything… IT, internal audit, etc…we have entrusted them with our business and they have played an integral role to our ongoing success.
Anthony Humphries, President & CEO, Noble Bank & Trust, NA, Anniston, Alabama