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Risk Management Training Program

Examination Management School

Program Overview

Examination Management School is designed to evaluate and enhance a participant’s technical and analytical examination knowledge, as well as their communication and professionalism skills. During the three-week course, participants engage in an interactive case study serving as the Examiner-in-Charge of a bank examination. Participants present examination findings by conducting simulated meetings with bank management and composing various component comments for inclusion in a Report of Examination (ROE). Throughout the course, participants receive feedback based on their demonstrated technical, analytical, communication, and professionalism skills. In concert with the evaluative simulation, participants are exposed to higher-level examination concepts with the intent that they gain tools and skills to address examination challenges and effectively deal with issues.

Key Objectives

After completing this course, participants will be able to:

• Use technical and analytical skills to accurately identify and analyze concerns with examination findings in order to provide a component and composite rating that is well-supported.
• Effectively and professionally communicate examination findings for each CAMELS component during simulated meetings with bank management.
• Effectively compose or edit clear, concise, and well-supported comments for each CAMELS component and the Report of Examination.

Instructional Format

Classroom setting that simulates a bank examination. Activities include independent work, role-plays, group activities, and facilitated classroom discussion.

Duration

This is a three-week course. The first week is conducted offsite through virtual classroom presentations and individual assignments. The second and third weeks are completed in the traditional classroom setting.

Level

Intermediate.

Target Audience

This course is open to appropriate staff of the FDIC and partner government regulatory agencies. This course is not open to the public or staff of private banks.

FDIC participants should attend in accordance with the parameters outlined in the Examiner Training and Development Policy (36-40 months for CEP Classes and 29-33 months for individuals hired after March 2020). State Banking Authority participants should attend no sooner than six months after successfully completing Loan Analysis School. Participants should have experience preparing all sections of the Report of Examination and must successfully complete at least one practice Examiner-in-Charge (PEIC) assignment prior to attending the course.

Prerequisites

The pre-commissioned examiner must perform the following before attending:

• Complete the four previous RMS Risk Management core schools – Introduction to Examinations School, Financial Institution Analysis School, Asset Liability Management School, and Loan Analysis School.
• Complete the Asset Quality/Asset Manager training modules following Loan Analysis School.
• Successfully complete at least one PEIC assignment.
• For Asset Quality (at least one time, independently):
  • Read Section 3 of the RM manual (specifically 3.1 and 3.2).
  • Assess management’s ability to identify, measure,  and control risk related to Asset Quality.
  • Assess the adequacy and adherence to the loan policy and internal review system.
  • Review loan line sheets for systemic underwriting and credit administration concerns.
  • Review or prepare an Analysis of Loans Subject to Adverse Classifications page (Ouija page).
  • Review the Allowance for Loan and Lease Losses (ALLL).
  • Conduct meetings with management related to asset quality findings.
  • Prepare an asset quality comment for inclusion in the Report of Examination (ROE).
• For Management, (at least one time independently):
  • Read Section 4 of the RM manual (specifically 4.1, 4.2, 4.3, and 4.5).
  • Conduct an exit meeting with senior management at the bank.
  • Present exam findings at or attend a Board of Directors meeting.
  • Complete a management comment for inclusion in the ROE.
• Problem Bank Exposure
  • Read a well-written problem bank report – you can speak to your supervisor for guidance in obtaining a well-written ROE.

Pre-Course Assignment

Prior to attending the course, participants complete a participant profile. The participant profile provides instructors with information regarding the participants’ field experience, especially relating to Asset Quality, Management, and the EIC role. The participant’s supervisor must approve the profile and submit it no later than 11 business days prior to the start of class. In addition, participants must review the Academic Integrity Policy and submit a signed attestation to abide by the policy and not share course materials.

Participants must also complete a series of computer-based training modules centered on the review of the management component. The modules take approximately 24 hours to complete and are available in FDICLearn. The following topics are included:

• Corporate Governance
• Responsibilities of the Board and Senior Management
• Dominant Officer and Succession Planning
• Strategic Planning
• Ethics and Conflicts of Interest
• Risk Scoping and Examination Planning
• Overall Condition and Risk Profile and Summary
• Writing an Effective Management Component Comment
• Effective Writing for the Report of Examination
• Supervisory Recommendations and MRBA
• Introduction to Enforcement Actions
• Forward-Looking Supervision
• Root-Cause Analysis
• Critical Communication for Examiners

Participants should receive pre-course logistics and assignments approximately 8 weeks prior to the session. All pre-requisites and pre-course assignments must be completed no later than 11 business days prior to the session start date.

Special Requirements

Participants will need access to a laptop with a camera or camera attachment for the virtual portion of the course or for fully virtual sessions. Participants DO NOT need to bring a laptop with them for the in-person portion. All participants will be assigned a laptop for use in the classroom. Participants may bring their laptop for other non-course related use outside of class hours.

Post-Course Recommendation

Participants should be scheduled for another practice Examiner-in-Charge assignment 4-6 weeks after completion of this course to reinforce the skills learned from this session.

Post-Course Feedback

A written assessment of the participant's performance is submitted to each participant's field supervisor or training contact approximately 30 days after the conclusion of the course.

Credits

Continuing Education Unit (CEU): 6.8
Continuing Professional Education Unit (CPE): 81.5

More Information

For information regarding administrative policies such as complaints and refunds, please contact Corporate University, Attn: NASBA Representative Ava Livas, Room A-3025, 3501 North Fairfax Drive, Arlington, VA 22226 (703) 562-2463.

The Federal Deposit Insurance Corporation is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBARegistry.org

The Federal Deposit Insurance Corporation (FDIC) is accredited by the International Association for Continuing Education and Training (IACET) (www.iacet.org). The FDIC complies with the ANSI/IACET Standard, which is recognized internationally as a standard of excellence in instructional practices. As a result of this accreditation, the FDIC is accredited to issue the IACET CEU.

For more information concerning course content and administration, please contact Catherine Eisel at (703) 516-5190.