Risk Management For The Community Bank - 843 Words

For the community bank, goals are incorporated into the risk management program established by the CRO and management. To ensure the bank serves the local community, the identification and management of risks and loss exposures, in addition to, policies and procedures enable the institution to thrive. Tolerable uncertainty, legal and regulatory compliance, economy of operations, social responsibility are pre-loss goals, whereas, survival, business continuity, profitability and growth, and earnings stability are post-loss goals. The attainment of each risk management is addressed. The first goal is tolerable uncertainty. According to Elliott (2012), keeping management assured whatever happens will be within anticipated bounds and effectively addressed. The developed risk management program has analyzed the risks for the community bank and aligned safeguards with the bank’s objectives. Accounting for the risk appetite of senior management guides the CRO. Through ERM an d traditional risk management, risk financing techniques and the purchase of insurance mitigate the identified risks. Legal and regulatory compliance is the second goal. This goal guarantees the legal obligations are fulfilled (Elliot, 2012). For the community bank as a whole entity, the CRO is responsible for assisting in managing this risk and the liability. For example, the CRO has implemented ERM strategies of planned and unplanned retention. The employees are aware of the actions necessary toShow MoreRelatedRisk Management Program For A Small Community Bank1012 Words   |  5 PagesRisk Management Program A risk management program provides the framework for an organization to assess the risks that the company faces. As a Chief Risk Officer (CRO) for a small community bank with one location, employing 30 people either in full-time or part-time positions, it is important to develop a complete, thorough risk management program for the bank. 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