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2012 Annual Performance Plan 

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Effective Management of Strategic Resources

Introduction
The FDIC recognizes that it must effectively manage many critical strategic resources to successfully carry out the annual performance goals outlined in this plan and accomplish its mission.  These resources must be aligned and deployed to the areas where they are most needed.  An overview of planned 2013 initiatives to enhance the FDIC’s management of its key strategic resources is provided below.

Financial Resources Management
The FDIC does not use taxpayer funds.  Its operational expenses are overwhelmingly paid from the DIF, which is funded by deposit insurance assessments paid by insured financial institutions.  The FDIC takes very seriously its fiduciary responsibilities to use these funds efficiently and cost-effectively to meet its mission responsibilities.  To that end, the FDIC engages annually in a rigorous planning and budget formulation process to make sure that budgeted resources are properly aligned with workload projections and designated corporate priorities (see Appendix B).

The FDIC’s self-discipline in managing its financial resources has been apparent over the past several years.  From 2008 through 2010, the FDIC’s annual operating budget almost quadrupled and its authorized staffing level almost doubled in response to a rapid increase in the number of problem institutions and insured institution failures.  The FDIC relied primarily on non-permanent staff and contractor resources to address the dramatic uptick in its supervisory and resolutions workload, in order to facilitate future budget and staffing reductions when workload returned to more normal levels.  In 2012 and 2013, both the annual operating budget and authorized staffing level declined substantially.  The FDIC’s annual operating budget and authorized staffing for 2013 are approximately 33 percent and 14 percent, respectively, below the peak levels achieved in 2010 and 2011.

In 2013, the FDIC will continue to carefully monitor both its supervision and receivership management workload and will take steps to promptly reduce expenses as underlying workload declines.  A steady reduction in both contractor spending and non-permanent staffing is projected in 2013 and future years as the banking industry improves and the residual workload from the recent financial crisis is completed.  These reductions may be offset to some extent by the resources required to meet the FDIC’s expanded mission responsibilities for large and complex banks and holding companies under DFA.

Human Capital Management

    The FDIC’s most important resource is the “intellectual capital” that its employees bring to bear on the accomplishment of its mission.  For that reason, the FDIC strives to attract, develop, and retain a highly skilled, diverse, and results-oriented workforce and to be regarded as a preeminent place to work in the federal government especially among employers whose workforces consist primarily of financial professionals.  More than one-quarter of the FDIC’s current permanent workforce is projected to retire over the next ten years.  This will provide the FDIC a unique opportunity to reshape its permanent workforce to provide effective regulatory oversight to meet the emerging challenges of an increasingly complex U.S. financial system in the 21st century.  In 2013, the FDIC will continue to pursue several initiatives to manage its future permanent workforce while addressing immediate staffing needs.

    Strategic Workforce Planning and Readiness
    The Corporate Employee Program (CEP) is the primary vehicle used to fill new, entry-level positions in the FDIC’s core bank supervision and resolutions and receivership management functions.  The CEP emphasizes the development of a more flexible workforce that is cross-trained in the Corporation’s core mission functions and can be redeployed rapidly to address new workload priorities in response to unexpected external events or changing conditions in the banking industry and the broader economy.

    During the first phase of the CEP, newly hired Financial Institution Specialists (FISs) are exposed to each of the FDIC’s key business processes:  deposit insurance, risk-management examinations, compliance examinations, and resolutions and receivership management.  After the completion of the rotational phase of the program, they are assigned to a specific commissioning track.  Upon successful completion of the rigorous three-year training program, they are commissioned as Financial Institution Examiners (FIEs) or Resolutions and Receiverships Specialists.  At the end of 2012, the FDIC’s field examination and resolutions and receivership management workforces included 498 FISs and 362 FIEs that entered the Corporation through the CEP.  The FDIC expects to hire an additional 120 FISs in 2013.

    A key recruiting strategy to bring talent into the FDIC and the CEP is the Financial Management Scholars (FMS) Program.  Begun in 2011 on a pilot basis, this is a ten-week summer internship program that exposes talented students to the FDIC’s supervisory and receivership management business lines.  Successful FMS participants are offered positions in future CEP classes following their graduation.  Approximately 45 FMS participants joined or will join the CEP from the pilot FMS Programs conducted in 2011 and 2012.

    The highest human resources priority for 2013 will continue be the hiring and development of employees with the skills needed to assess the risks posed by banks and holding companies with assets over $50 billion in support of the FDIC’s new responsibilities under DFA to plan for the possible orderly liquidation of large systemically important bank holding companies, and designated nonbank financial companies.  The FDIC has significantly expanded the number of staff in several divisions and offices to support these new responsibilities.

    In 2013, the focus will be on developing and enhancing career paths to ensure a steady flow of talent in this area.

    Workforce Diversity and Inclusion
    In 2013, the FDIC will continue to pursue a more comprehensive, integrated, and strategic focus on diversity and inclusion within the FDIC workforce. A new Diversity and Inclusion Strategic Plan, approved in early 2013, lays out a course for achieving workforce diversity by recruiting from a diverse group of qualified potential applicants; cultivating greater workplace inclusion through collaboration, flexibility, and fairness; and equipping leaders with the ability to manage diversity, measure results, and refine approaches on the basis of data. The plan details specific steps to enhance diversity and inclusion at the FDIC in the areas of leadership engagement, analytics and reporting, training, communications, strategic planning, and program enhancement.

    Succession Management
    Like most other federal agencies, the FDIC faces potential succession management challenges in the future as many of its long-term, experienced employees retire.  The FDIC reassesses its vulnerabilities to retirements annually and implements appropriate strategies to mitigate that risk.  In addition, the FDIC has undertaken an initiative to develop competency models for all mission critical job families.  Employees’ proficiency levels for the competencies are assessed and the results are used for employee development, career planning, training initiatives, and workforce/succession planning.  The long-term goal is to have a real-time inventory of current and projected potential successors for all competencies associated with the FDIC’s mission critical occupations.

    The FDIC has also undertaken an initiative to document best practices and lessons learned from bank closing activity.  This information is important to ensure corporate readiness as experienced employees retire and the temporary positions created to support bank closing activity expire.  It was collected in 2011 and 2012 through seminars, one-on-on interviews, and recordings of closing activity with similar collection planned for late 2013.  The FDIC uses this information along with ongoing job task analyses of multiple resolutions and receiverships functions to identify the future skills necessary to conduct bank resolutions.  It also will be used to help identify and develop future training and learning opportunities to maintain employee skills when there is less bank failure activity to provide on-the-job training opportunities to new employees.  The FDIC will pursue a similar initiative in its Supervision Program in 2013, developing case studies to document the problems encountered by insured financial institutions.

A Culture of Workplace Excellence
Over the past several years, the FDIC and the U.S. Office of Personnel Management have conducted annual employee surveys. These surveys identified major areas of strength as well as opportunities for improvement in employee satisfaction and engagement. They have consistently demonstrated that FDIC employees have an excellent understanding of the FDICís mission and strategic direction and know how their work fits into the organizationís goals and priorities. They enjoy their work, believe it is important, and get a sense of personal accomplishment from it. Employees are also highly satisfied with their pay and benefits, as well as the FDICís family-friendly work-life balance programs, physical work environments, and training, technological, and other resources.

The FDIC Workplace Excellence Program builds on the successes of the Culture Change Initiative.  Workplace Excellence consists of a two-pronged approach:  a National Workplace Excellence Steering Committee and individual Division/Office Workplace Excellence Councils.  The Steering Committee and WE Councils will provide diverse forums focused on maintaining, enhancing, and institutionalizing positive workplace and cultural change at the national and division/office levels at the FDIC.

Employee Learning and Development
The FDIC provides employees with skills-based training and leadership development opportunities to help achieve its mission.  In 2013, the FDIC’s Corporate University will continue to offer innovative solutions to prepare both current and new employees for the challenges ahead.  This year it will begin implementation of several multi-year comprehensive curricula that move mission critical divisions beyond the financial crisis, complete the transformation of the leadership development program, and expand the use of simulations to enhance corporate readiness.

The FDIC provides its examination workforce with the technical knowledge and skills necessary to examine and supervise financial institutions for safety and soundness and consumer protection.  In 2013, the FDIC will develop and implement the priority components of the approved Division of Depositor and Consumer Protection (DCP) learning and development framework.  Based on a comprehensive needs assessment completed in 2012, the framework is designed as a multi-year initiative to increase and organize the dissemination of critical information, enhance and expand training programs at all levels, and facilitate the sharing of knowledge and expertise across the Division.

In support of the FDIC’s new responsibilities for the possible orderly liquidation of a systemically important financial company, facilitated discussions, tabletops, and focused simulations will be used to enhance strategic and operational readiness, build interagency relationships, and implement and test new policies and procedures.

In addition to technical training, the FDIC is focused on developing employees as leaders at all levels of the organization with a comprehensive leadership development curriculum that consists of core courses, electives, and various enrichment activities.  Development of the core leadership curriculum was completed in 2011, and new electives and enrichments activities will be added in 2013 to promote leadership throughout the organization.  The FDIC will continue to use all of its learning programs as opportunities to strengthen its organizational culture, build key competencies, and reinforce its corporate values.

Management of Information Technology Resources
Information Technology (IT) provides the FDIC with innovative, timely, reliable, and secure services and solutions.  Information technology provides business value by enabling more efficient execution of the FDIC’s mission responsibilities and priorities.  IT resources include a broad range of hardware and software assets, such as desktop computers, laptops, network infrastructure, the business application portfolio, and the FDIC’s Web site (www.fdic.gov). 

During the crisis, the FDIC expanded its IT infrastructure and its operational resources to support the FDIC’s workforce expansion and increased bank resolution activity.  The FDIC continues to adjust its IT infrastructure and operational resources to accommodate organizational changes, resolution activity, and new regulatory requirements.

The FDIC recently completed development of a business technology strategic plan, emphasizing the strategic imperatives needed to provide business value to the FDIC and to address any gaps in either business or information technology capabilities.  While continuing to provide quality information technology services in support of the day-to-day operations of the FDIC, progress will continue on key strategic imperatives.

    Applications Modernization
    The Consolidated Applications Modernization Strategy (CAMS) project was initiated to address the business impact of technology obsolescence in the FDIC’s applications portfolio and to develop a strategy to mitigate the associated risks within a five- to seven-year period.  The CAMS analysis identified technologies used within the applications portfolio that are obsolete or no longer compatible with the future design of the FDIC’s information technology architecture.  The FDIC has created road maps that document the sequence in which obsolete applications should be upgraded or replaced.  Opportunities for application consolidation and business process reengineering were identified and incorporated into the roadmaps.  Although some progress was made on the roadmaps between 2009 and 2011, the banking crisis necessitated that most information technology software development efforts were used to meet urgent regulatory and process changes rather than to remediate aging applications.  In 2012, the roadmaps were updated and remediation efforts intensified.  These efforts will continue in 2013 and future years with planned modernization efforts for key applications in the insurance, supervision, and receivership management programs.

    Advanced Analytics
    The FDIC increasingly needs the ability to manage, collect, and leverage large data sets, including both structured and unstructured data, for various mission-critical analyses.  Harnessing the data and converting it into actionable insights helps drive faster and better decision-making, expedient analyses, predictable outcomes, and optimal operational efficiency.  The FDIC’s needs will be addressed by implementing advanced analytics through business intelligence capabilities.

    Advanced analytics will provide the ability to assess the quality of the data, define business rules, capture data lineage, manage the metadata, and use different techniques to understand massive data sets coming into the FDIC.  In 2013, core technologies and capabilities for business intelligence analytics will be extended across the organization.  The FDIC will mature processes for data visualization, geospatial mapping, predictive analytics, data quality, and data profiling.

    Mobility
    The American public and an increasingly mobile workforce expect to be able to access high-quality information and applications anywhere, anytime, and on any device.  In response, the FDIC will expand its mobile technology capabilities for both the FDIC workforce and public.  In 2013, the FDIC will continue implementation of a “mobile first” strategy that follows the mindset of creating information once to publish everywhere (internal applications, external Web site, etc.).  Content will be decoupled from the presentation to allow greater flexibility in development approaches.  Web Application Programming Interface (API)-driven services will be leveraged for interoperability and openness.  The FDIC has already begun this work on the www.fdic.gov site.  In November 2012, the FDIC launched a redesign of its popular online BankFind application to enhance the look and usability of the site, including improved ease of use from mobile devices.  The FDIC will expand its internal Wi-Fi network to improve reliability and support expected exponential growth in traffic.  Other technologies required to support both a mobile workforce and public stakeholders will be explored and addressed.

    Electronic Document Management
    The FDIC continues to rely on paper documents and the processing of paper documents for a majority of its business capabilities.  Managing paper and unstructured content at the FDIC is largely manual and is inefficient.  The FDIC will focus on improving the efficiency and reliability for electronic document processing and workflow automation.  In 2013, the FDIC will implement a robust and scalable foundation for enterprise document management capabilities.  This strategic imperative is related to the FDIC’s Information Management and Compliance (IMAC) program.  The purpose of IMAC is to develop and establish a coordinated and interrelated set of policies, processes, and technologies that support the FDIC legal e-discovery obligations and the corporate records and information management functions.

    In 2013, the FDIC will establish an Enterprise Document Management (EDM) Service Center to deliver the needed EDM solutions, services, and capabilities to the organization.

    Information Security and Corporate Privacy Programs
    The FDIC’s Information Security and Privacy Programs protect the FDIC’s data and information systems and strive to create an environment that protects these assets.  External stakeholders, including financial institutions, the general public, and the FDIC community (employees and contractors), must have confidence that FDIC data and information systems are protected.  In 2013, the operational focus of these programs will continue to be on ensuring the reliability, availability, confidentiality, and integrity of the FDIC’s information and data assets.  The FDIC will continue to establish policies and implement procedures that provide the highest possible level of protection of sensitive information while allowing the organization to effectively carry out its mission.

    Cyber Security
    The Government Accountably Office (GAO) recently noted that ďFederal government agencies and the nationís critical infrastructures have become increasingly dependent on computerized information systems and electronic data to carry out their operations. While creating significant benefits, this can also introduce vulnerabilities to cyber-threats.Ē The types of threats to agency data and systems have become highly complex, are continuously evolving and are often very stealthy. In 2013, the FDIC will continue to refine our risk framework to incorporate trigger points for escalation of new types of incidents and to strengthen our preventive and detective security tools to deal with common and emerging sources and types of cyber security threats. Sources of threats include hackers, insiders, and spyware/malware authors. Criminal groups and terrorists may also engage in cyber threats. Common types of attacks include cross-site scripting, denial of service attacks, phishing, and Advanced Persistent Threats. As the FDIC refines our risk framework, particular attention will be focused on coordination across the Corporation on cyber security issues, including both the security of internal FDIC systems and FDIC oversight of security programs maintained by external technology service providers.

Management Controls and Contract Management
As an integral part of its stewardship of the DIF, the FDIC maintains a comprehensive risk management and internal controls program that is designed to improve the efficiency, effectiveness, control, and risk-focus of internal operations.  Staff with the FDIC’s internal controls program advise and assist with issues such as risk management, internal controls, system security, privacy, operational effectiveness and efficiency, post-project reviews, and audit follow-up.  During 2013, the focus will be on continuous improvements to the FDIC’s core business functions, with particular emphasis on loss-share operations, contract management oversight, new responsibilities associated with DFA, closing of temporary satellite offices, and system development issues.

The FDIC’s contract expenditures rose dramatically from 2009 through 2011, primarily to support the resolutions and receivership management function.  This growth required the FDIC to expand its contract oversight management capabilities and implement enhanced management controls and reporting to make sure that appropriate services were received for the funds spent on contracting.  Over the past year, the FDIC implemented additional monitoring tools, including an executive dashboard with metrics that provide visibility into key risks; oversight resources segmented by category and activity, complexity, and resource requirement; and more contract oversight resources.  Also, the service support level of key IT systems supporting contracting was upgraded.


In 2013, the FDIC will continue to conduct transaction sampling and invoice reviews and to enhance the management information that is available on contracting.  In addition, the FDIC will evaluate its business and legal services contracting programs to identify possible enhancements to promote increased participation by minority-and women-owned businesses and law firms, as required by Section 342 of DFA.  The FDIC will also develop procedures to determine whether FDIC contractors and subcontractors have made good faith efforts to include women and minorities in their workforces, as required by Section 342.



Last Updated 08/01/2013 Finance@fdic.gov