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Risk Management Training Program

Examination Management School

Program Overview

Examination Management School is designed to simulate the bank examination process, beginning with pre-exam functions and concluding with a completed Report of Examination. The course presentation mainly consists of an interactive case study in which the participant plays the role of an Examiner-in-Charge (EIC). Participants fulfill the general duties of an EIC over the course of the three-week school.

The pre-course work is directly related to the interactive case study, and needs to be submitted to the Training Center prior to attendance.

Key Objectives

Upon completion of this course, participants will be able to:

• Describe and effectively perform in the EIC Role.
  • Prepare a pre-examination planning memo, or similar, that identifies high, normal, and low risks for a bank examination.
  • Outline how to effectively plan and manage the exam process.
  • Demonstrate effective feedback techniques.
  • Successfully conduct meetings with bank management, even during confrontational conditions.
• Display professional communication during management meetings.
  • Effectively communicate exam findings using the assess and support model.
  • Apply technical and analytical knowledge to examination findings.
  • Identify the key issues of the exam.
  • Compose a well-written agenda for meetings with bank management.
  • Write a clear, well-supported Report of Exam (ROE) for a complex institution.
• Identify the common characteristics of a well-written ROE comment.
  • Compose a comment for each CAMELS component that follows the assess, support, recommend, response writing style.
  • Compose a clear, well-supported comment.
  • Apply technical and analytical knowledge to the composition and editing of exam comments.
  • Compose a well-written ECC Page, in accordance with the RMS Risk Management Manual of Examination Policies.

Instructional Format

Classroom setting that simulates a bank examination, role plays, group activities, and facilitated classroom discussion.

Duration

This school is a three-week course.

Level

Intermediate.

Target Audience

Participants should generally have 30-42 months of risk management bank examination experience, which should include preparing all sections of the Report of Examination, and completing one practice job as Examiner-in-Charge.

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.

Prerequisites

The pre-commissioned examiner should have performed the following items before attending Examination Management School:

• Completed the four previous RMS Risk Management core schools – Introduction to Examinations School, Financial Institution Analysis School, Asset Liability Management School, and Loan Analysis School.
• Successfully complete at least one PEIC prior to attending EMS.
• 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 the instructors with information regarding the participants’ field experience, especially in regard to Asset Quality, Management, and the EIC role. The participant completes the form, which is approved electronically by their supervisor. Corporate University must receive the completed form no later than ten business days before the session start date. If the profile is not received on time, the participant may be cancelled from the session.

Participants must also prepare a Pre-examination Planning Memorandum, in accordance with outstanding guidance and complete an Earnings comment that demonstrates writing and analytical skills. Participants:

• Complete the Forward-Looking Supervision computer-based training module.
• Read the Strategic Plan Self-Study and review the Strategic Plan for Virginia Square Bank (VSB).
• Complete the pre-examination analysis of VSB using the information contained in the Pre-course materials.
• Prepare the Pre-examination Planning (PEP) Memo including the discussion of targeted risk areas and lower risk areas for Virginia Square Bank.
• Prepare a draft Earnings comment.

Prior to attending EMS, participants will discuss the PEP Memo in a virtual instructor led training session. The objective of this session is to bring all participants up to the same level of understanding of the institution and to discuss the risk scoping process.

Special Requirements

Participants DO NOT need to bring a laptop with them to the classroom. All participants will be assigned a laptop on day one of the session. You may bring your laptop so that you can utilize it for other non-course activity in your hotel room.

Post-Course Recommendation

Participants should be scheduled for a practice examination within 4-6 weeks of 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 district office approximately 30 days after the conclusion of the school.

Credits

Continuing Education Unit (CEU): 10.7
Continuing Professional Education Unit (CPE): 127.5

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 FDIC has been approved as an Authorized Provider by the International Association for Continuing Education and Training (IACET) (www.iacet.org), 1760 Old Meadow Road, Suite 500, McLean, VA 22102.

For more information concerning course content and administration, please contact Kayt Shipley at (703) 516-5071 or Petra Nelson at (703) 516-65491.