Risk rating – evaluate and manage your risk.
It has long been expected by the regulators and your board that you have a system in place to evaluate and manage risk in your Trust department.
Risk rating practices and policies have been established by organizations to address regulator’s expectations. This includes risk rating assessment at pre-acceptance and acceptance, account reviews, fiduciary watch lists, etc.
A new expectation from the regulators is that you utilize a numerical risk rating system at the account level. In other words, evaluate each account and assign a numerical rating. This has arisen as a “suggestion” regarding account acceptance and account review processes as well as in overall risk management practices. This has come up often enough and by enough regulators that it is clearly a trend.
You have a few choices:
- Ignore this warning of the new expectation and wait for the regulators to require it of you.
- Invent a process / system yourself and wait until the regulators come in to see how they like it.
- Implement a system that has already been deemed acceptable by regulators in other Trust departments. *
If you choose the 3rd option, you can acquire a system that is ready to go. You can install it immediately! You will have all the tools necessary to adapt your policy and procedures – account acceptance, account review and risk management procedures to incorporate the usage of this system.
With our risk rating package, you will receive the following:
- A risk rating questionnaire which will establish the numerical rating.
- A User Manual with the instructions and background necessary for implementation.
- Suggested policy and procedural language.
- A one-hour telephone consultation – if necessary – regarding the implementation of this system.
The value of having this system in place for the next examination- priceless! The value of not having to spend your time creating this system- priceless!
To inquire about a Risk Rating program for your organization, CLICK HERE.
Pohl Consulting and Training, Inc., provides a full range of compliance services, and also provides Trust consulting services for a diverse set of industry needs. Pohl Consulting also provides comparative data tools such as Trustcompare®, Pricecompare™ and Compcompare™.
* We must add the caveat that while this system has been deemed acceptable by various Trust examiners, we do not guarantee that every individual examiner from every regulatory agency will sign off on this process. There is too wide a variation in attitude, focus and perspective from the regulatory agencies to make such a guarantee.