Program Overview
The Risk Management Capstone is designed to evaluate and enhance a participant’s technical and analytical examination knowledge, as well as their communication and professionalism skills. During the three-week course, participants engage in an interactive case study serving as the Examiner-in-Charge of a bank examination. Participants present examination findings by conducting simulated meetings with bank management and composing various component comments for inclusion in a Report of Examination (ROE). Throughout the course, participants receive feedback based on their demonstrated technical, analytical, communication, and professionalism skills. In concert with the evaluative simulation, participants are exposed to higher-level examination concepts with the intent that they gain tools and skills to address examination challenges and effectively deal with issues.
Skills Taught
By the end of this course, students will have been taught how to:
- Use technical and analytical skills to accurately identify and analyze concerns with examination findings in order to provide a component and composite rating that is well supported.
- Effectively and professionally communicate examination findings for each CAMELS component during simulated meetings with bank management.
- Effectively compose or edit clear, concise, and well-supported comments for each CAMELS component and the Report of Examination.
Duration and Format
This course contains:
- Precourse: Participants complete a series of computer-based training modules centered on the review of the management component.
- 3-week facilitated course that simulates a bank examination. The first week is conducted offsite through virtual classroom presentations and individual assignments. The second and third weeks are completed in-person via a facilitated classroom setting. Activities include independent work, role-play meeting assignments, and facilitated group discussions.
Level and Credits
Intermediate
Continuing Education Unit (CEU): 7.1
Continuing Professional Education Unit (CPE): 84.8
Target Audience
This course is open to appropriate staff of the FDIC and partner government regulatory agencies. This course is not open to the public or staff of private banks.
FDIC participants should attend in accordance with the parameters outlined in the Examiner Training and Development Policy. State Banking Authority participants should attend no sooner than six months after successfully completing Loan Analysis School. Participants should have experience preparing all sections of the Report of Examination and must successfully complete at least one practice Examiner-in-Charge (PEIC) assignment prior to attending the course.
Prerequisites and Prior Work Experience
Prior to attending the course, participants must have completed and have a working knowledge of the following:
- Complete the four previous RMS Risk Management core schools – Introduction to Examinations School, Financial Institution Analysis School, Asset Liability Management School, and Loan Analysis School.
- Complete the Asset Quality/Asset Manager training modules following Loan Analysis School.
- Successfully complete at least one PEIC assignment.
- For Asset Quality (at least two times independently):
- Assess management’s ability to identify, measure, and control risk related to Asset Quality.
- Assess the adequacy and adherence to the loan policy and internal review system.
- Review loan line sheets for systemic underwriting and credit administration concerns.
- Review or prepare an Analysis of Loans Subject to Adverse Classifications page.
- Review the Allowance for Loan and Lease Losses.
- Conduct meetings with management related to asset quality findings.
- Prepare an asset quality comment for inclusion in the Report of Examination (ROE).
- Read Section 3 of the Risk Management manual (specifically 3.1 and 3.2).
- Review outstanding concentration guidance, including commercial real estate (CRE) guidance.
- For Management, (at least one time independently):
- Read Section 4 of the RM manual (specifically 4.1, 4.2, 4.3, and 4.5).
- Conduct an exit meeting with senior management at the bank.
- Present exam findings at or attend a Board of Directors meeting.
- Complete a management comment for inclusion in the ROE.
- Problem Bank Exposure
- Read a well-written problem bank report – participant’s supervisor should provide guidance in obtaining a well-written ROE.
Pre-Course Assignments
Prior to attending the course, participants must complete a participant profile, academic integrity attestation, and several computer-based instruction (CBI) modules. Participants are authorized 40 hours to complete precourse work.
- Participant Profile: The participant profile provides instructors with information regarding the participants' field experience, especially relating to Asset Quality, Management, and the EIC role. The participant’s supervisor must review and sign the profile to attest to the participant’s preparedness.
- Academic Integrity Attestation: Participants must review the Academic Integrity Policy and submit a signed attestation to abide by the policy and not share course materials.
- RMC Management Precourse Curriculum: Participants must also complete a series of computer-based training modules centered on the review of the management component. The modules cover the following topics:
- Corporate Governance
- Responsibilities of the Board and Senior Management
- Dominant Officer and Succession Planning
- Strategic Planning
- Ethics and Conflicts of Interest
- Risk Scoping and Examination Planning
- Overall Condition and Risk Profile and Summary
- Writing an Effective Management Component Comment
- Effective Writing for the Report of Examination
- Supervisory Recommendations and MRBA
- Introduction to Enforcement Actions
- Forward-Looking Supervision
- Root-Cause Analysis
- Critical Communication for Examiners
All precourse assignments are due in general two weeks/11 business days prior to the start of the session. The exact date the work is due for any given session is specified in the precourse information sent approximately two months prior to the start date.
Post Course Recommendation and Feedback
Participants should be scheduled for another practice Examiner-in-Charge assignment 4-6 weeks after completion of this course to reinforce the skills learned from this session.
A written assessment of the participant's performance is submitted to each participant's field supervisor or training contact approximately 30 days after the conclusion of the course.
Key Topics
- Assignments: Participants complete the following assignments during the course. For meeting assignments, participants are evaluated on their technical, analytical, verbal communication, and professionalism skills. For comments, participants are evaluated on their technical, analytical, and written communication skills.
- Examination Planning Memo (EPM) – this assignment is not formally evaluated. The assignment provides participants an opportunity to get familiar with the case bank.
- Asset Quality Meeting
- Asset Quality Comment
- Liquidity Meeting
- Liquidity Comment
- Management Meeting
- Management Comment
- Final Meeting
- ECC/MRBA Page
- Large Group Sessions:
- Course Introduction: Participants are provided and overview of the course and schedule.
- Examination Planning Memo (EPM) Debrief – Discussion of the EPM and debrief of the case material received to this point. Conducted via the virtual classroom.
- Asset Quality Q&A – Session is a structured opportunity for questions relating to Asset Quality.
- Asset Quality Knowledge Check – Discussion and walk-through of the Asset Quality UFIRS decision factors.
- Liquidity and Management Knowledge Check – Discussion and walk-through of the Liquidity and Management UFIRS decision factors.
- Effective Communication – Discussion of effective techniques for communicating examination findings at a meeting.
- Board Meetings Discussion – Facilitated discussion of participant’s experiences participating in and attending board meetings.
- Guest Speaker: Broad outline of the Bank Secrecy Act, Anti-Money Laundering (AML) Act, Office of Foreign Asset Control (OFAC), and examination procedures.
- Small Group Sessions: Throughout the course, participants have scheduled check-ins with their facilitators. These check-ins provide facilitators opportunities to set expectations for upcoming assignments and answer any participant questions. Check-ins are conducted in the small group setting with no more than three participants per instructor. Participants can also ask questions of the Lead Facilitator or their small group facilitator as needed.
More Information
The Federal Deposit Insurance Corporation is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org
For more information concerning course content and administration, please contact Bonnie Beranek or Nicole Espinal .