Bank directors must satisfy themselves that bank executives are managing all enterprise risks, and given the expectations of the bank charter, the board must be sure that the risk associated with extending credit in the communities served is being managed correctly. This presentation offers a 14-point credit risk management diagnostic checklist that bank directors can use to make sure their bank is practicing effective credit risk management.
Anyone directly or indirectly involved in credit risk management, including bank directors and executive management, will want to learn about the 14-point diagnostic credit discipline tools to gauge whether their bank’s credit risk management is performing satisfactorily.
1-Learn why the regulatory agencies expect their banks to implement and maintain strong credit cultures
2-Learn why strong credit cultures are key components of high-performance banks
3-Learn how strong credit culture depends on effective credit risk management
4-Learn how effective credit risk management depends on credit discipline
5-Learn how to use each of the 14 credit discipline tools to evaluate a bank
6-Learn how to identify and improve specific credit risk activities
1- 4 types of credit culture
2- optimal credit culture
3- Requirements for changing credit culture
4- key components of effective credit risk management
5- role of risk appetite and risk tolerance in banks risk strategies
6- credit discipline tools as diagnostic measures
7- use of credit discipline tools diagnostic checklist to evaluate, identify, and improve credit risk management acitivities
Any organization that extends credit will benefit—commercial banks, investment banks, non-banks (insurance companies, private equity groups, fin-tech lenders) , not-for-profit organizations, government agencies.
A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Martin J. "Dev" Strischek principal of Devon Risk Advisory Group based near Atlanta, Georgia. Dev advises, trains, and develops for financial organizations risk management solutions and recommendations on a range of issues and topics, e.g., credit risk management, credit culture, credit policy, credit and lending training, etc. Dev is also a member of the Financial Accounting Standards Board’s (FASB’s) Private Company Council (PCC). PCC’s purpose is to evaluate and recommend to FASB revisions to current and proposed generally accepted accounting principles (GAAP) that are more appropriate for privately held firms. He also serves as the PCC’s representative to FASB’s Credit Losses Transition Resource Group supporting the new current expected credit loss (CECL) standard to be implemented in fiscal year 2019 for public companies and 2020 for private firms.
The former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust’s wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. He also spent three years as managing director and credit approver in SunTrust’s Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, he was chief credit officer for Barnett Bank’s Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, his experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor.
A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, Dev earned his M.B.A. from the University of Hawaii. Mr. Strischek serves as an instructor in several banking schools, including the Stonier Graduate School of Banking, and the Southwest Graduate School of Banking. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA.
Mr. Strischek has written some 200 articles on credit risk management, financial analysis and related subjects, and he is the author of Analyzing Construction Contractors and instructor of a contractor analysis workshop. A past national chair of RMA and former RMA Florida Chapter president, Dev has consulted on credit risk issues with banks in Morocco, Egypt, and Angola through the US State Department’s Financial Service Volunteer Corps (FSVC).