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Director's Corner

San Francisco Region Director's College Computer- Based Training
Management

Rating Management
Answer to the Rating Management Component of the Training Module:

Examiners rated management a "3". The capabilities of the board and senior management may be insufficient for the activities of the bank, particularly within the lending function. The board has not provided effective oversight and the president is exerting a dominant influence, which has elevated the bank's risk profile. Risk identification and management practices are less than satisfactory, policies and procedures are inadequate, and deteriorating conditions are not adequately identified or reported to the board. If you rated the management team a "4", we certainly understand your perspective given the board's dramatic failure to oversee the institution and management's lack of prudence. However, the "3" rating is likely based on expectations that the board and management can and will address the identified problems. Keep in mind that the rating for management is based on their performance in every major operational area of the bank. This would include findings associated with the specialty examinations - Information Technology, Compliance, and Trust.

Now let's move on to the composite rating module.

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Last Updated 06/29/2005 Supervision@fdic.gov

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