Pub. 15 2018 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 15 Issue 4 • 2017 or changes will influence the bank. In general, these reports show the up-to-the-minute state of preparedness for exams and audits. Finally, annual activities such as audits or third party re - views generate reports on the compliance program’s effective - ness. This annual look-back reflects how well the bank kept its risk exposures to acceptable levels. These types of reports often detail the overall effectiveness of the senior manage - ment team and compliance management in carrying out their responsibilities. These reports take an independent look at the program to gauge its effectiveness, efficiency and performance over a historical period.   That being said, remember that, if the reports are not accu - rate or are considered to be inadequate, the reports will be of no benefit. When reviewing your bank’s reports, keep in mind the following signs that should alert you to ineffective reporting: • Reports that are too long or too detailed. Key points cannot be extracted when the volume of information presented buries the real meaning.  • Reports that state only facts but provide no analytical statements or ratings. The board needs to understand whether the data being presented is positive or negative. • Reports that fail to identify the root causes of weaknesses. Failure to identify the root cause delays the implementa - tion of corrections.  • Reports that identify the root causes of deficiencies, but do not suggest appropriate corrective action. Solutions should be offered in reports.  • Reports that only emphasize weaknesses and ignore strengths. Focusing only on the negatives may inap - propriately exaggerate the scope or materiality of an identified problem.  • Reports that do not reflect the materiality or severity of an issue. Treating every issue uniformly is a sign that perspective may be lacking. The report should clearly identify whether or not the issue is systemic or isolated. Oversight of a compliance program that can withstand not only regulatory scrutiny, but the changing economic environ - ment and regulatory conditions is a tough assignment. Proper reporting ensures proper maintenance of the compliance program, and a well-maintained program that can be clearly communicated to examiners is the key to passing the exam. n Compliance Alliance is committed to providing resources for our bankers to assist with compliance; from keeping up with the changes, all the way through the reporting. Contact me directly at (888) 353-3933. I t’s time to Celebrate New Mexico BankingAt Its Best! As your 2017-2018 President, it is an honor for me to invite you, your senior staff and directors to attend the NewMexico BankersAssociation’s 107th Annual Convention, June 7-8, 2018, at the beautiful Sandia Resort & Casino in Albuquerque, NM. This years convention will elevate your success. Enjoy networking opportunities, valuable educational sessions and insights from industry leaders and experts regarding the significant issues of our time. We’ve developed an informative and inspirational program...you won’t want to miss it! Be part of the tradition and join us for the 107th Annual NMBA Convention! Mike Lowrimore NMBA President  New Mexico Bankers Association 107th Annual Convention  June 7-8 2018  Albuquerque, NM Celebrating New Mexico Banking A t Its Best