Early Warning System
Identify, Manage, Monitor and Control Risk
Successful management of risk depends on how well we anticipate and adapt to it. Successful institutions optimize operations within the context of the CAMELS rating framework.
Bank Boards and Management need to provide adequate oversight and effectively manage risk within their institution. Managing risk is not just a regulatory requirement but an essential element to the overall success of your institution.
Advanced Preparation Saves Time and Money
A CAMELS rating downgrade by the regulators can result in as much as an additional $100,000 per year in FDIC insurance premiums for every $100 million in deposits.
Lack of risk mitigation can significantly hinder the operations of institutions that score lowly within the CAMELS framework.
Ex-Regulators Provide Extensive Expertise
FinPro’s former senior regulators are uniquely positioned to recognize deficiencies and provide the qualitative analysis necessary for a CAMELS assessment.
To conduct a proper self assessment, a hands-on review from a regulatory perspective must be included.
Quantitative and Qualitative Analytics
The quantitative analysis includes:
- Institutional trends and key ratio analysis
- Peer data comparisons to highlight shortcomings or areas of success
- Past exams to determine the status of any regulatory actions, from recommendations to Matters Requiring Attention.
- All external and internal audits, compliance examinations, loan reviews or other internal control related reviews.
- Policies and Procedures.
- Management’s ability to identify and monitor risk.
- Systems that quantify risk.
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