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Wednesday, April 13, 2011 |
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10:00 am - 6:00 pm |
REGISTRATION OPEN |
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10:00 am - Noon |
PRE-FORUM WORKSHOP 1
Capital Modeling
Economic capital is based on a probabilistic assessment of potential future losses and is therefore a potentially forward-looking measure of capital adequacy than traditional accounting measures. The development and implementation of a well-functioning economic capital model can make bank management better equipped to anticipate potential problems. Large banks and some community banks have developed or are exploring implementation of economic capital models, with more banks likely to do so in the future. This workshop will cover economic capital framework, methodologies, and the use of economic capital in risk management.
Speaker
Stephen Hsu, Vice President, Operational Risk, Union Bank
Tara Heusé Skinner, Senior Risk Consultant, SAS Institute, Inc.
PRE-FORUM WORKSHOP 2
Conducting a Fraud Risk Assessment
- Holistic risk assessment approach
- Writing and implementing bank policies and procedures so they are cross integrates within departments
- Internal & external fraud
- Identifying key risk factor
Speaker
E. Michael Thomas CPA, CIA, CBA, CFE, CRP, CFF,
Partner, Financial Institution Risk Consulting, Crowe Horwath LLP |
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Noon |
Lunch on your own |
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1:00 - 2:15 pm |
OPENING GENERAL SESSION
DODD-FRANK IMPLEMENTATION - TRANSFORMING RISK MANAGEMENT
Learn how new regulators, new agencies and a new Congress will be transforming risk management. Our regulatory panel will give you the chance to ask questions and be prepared not surprised.
Speakers
Kerri R. Corn, Director for Market Risk, Office of the Comptroller of the Currency
Stephen R. Malphrus, Staff Director, Federal Reserve Board
Christopher J. Spoth, Senior Deputy Director, Division of Risk Management Supervision Federal Deposit Insurance Corporation
Moderator: Doug Johnson, Vice President, Risk Management Policy, American Bankers Association |
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2:30 - 4:00 pm |
CONCURRENT SESSIONS (3)
1. REQUIREMENTS FOR THE AMA QUALIFICATION (for banks $10B+)
This panel of large bank examiners will address the challenges banks face in implementing the Advanced Measurement Approach framework. The panelists will also share the regulatory expectations for the AMA, including areas such as internal data, scenario analysis, RCSA, and model validation.
Speakers
Pressigny Alcindor, Bank Examiner, Operational Risk Governance, Federal Reserve Bank of New York
Randal J. Gorman, Senior National Bank Examiner, Office of the Comptroller of the Currency
Joseph Peter, Federal Reserve Bank of New York
Moderator: Marty Blaauw, SVP, Operational Risk Manager, Union Bank
2. RISK MANAGEMENT PROGRAM - Elusive Goal or Survival Mandate? In the risk-adverse environment following the latest financial crisis, many banks are endeavoring to create an enterprise-wide risk management program that spans multiple lines of business. The ultimate goal is to create a culture where accountability for risk permeates the enterprise from the boardroom to the front line—instilling employees with the tools to identify manage and mitigate risk. What may have started as a lofty aspiration is now becoming a requirement in the face of heightened regulatory scrutiny and the ill-fated consequences of failing to act. Regulators expect banks to demonstrate rigorous command over the inter-connectivity of all risk areas including compliance risk, operational risk, financial risk and audit. How do you get there? Where should you start? Join these experts as they define the areas of risk that must be included in an ERM program, review regulator expectations, and provide examples of demonstrated best practices and successful strategies for creating an ERM program.
Speakers
Louis Barton, EVP, Frost National Bank
Kathy L. Moe, Field Supervisor, Federal Deposit Insurance Corporation
Amy Downey, Director of Professional Services, Consumer Compliance and Financial Crime, Risk & Compliance, Wolters Kluwer Financial Service
3. DEFENDING AGAINST THE FULL ARRAY OF THREATS FACING ONLINE BANKING
Cyber criminals are continually investing in new technologies and methods that allow them to compromise and take over accounts, and move large sums of money completely undetected. Banks are facing not just one type of malware, but a dizzying array of malware-enabled and human-perpetrated fraud via ACH, wire, bill pay and more. This session will uncover the full scope of threats and risks banks are facing today. It will demonstrate - using real-world data from institutions of all sizes - exactly how criminals are defeating existing controls (authentication, dual controls, geolocation, web traffic analyzers) to walk away with millions. With this understanding, banks can put in place best-practice strategies that allow them to balance offering enhanced online and mobile services, and managing risk. This session will provide insights on how institutions can cost-effectively and proactively defend against unpredictable and evolving threats, drawing from technology and customer interaction best practices learned from dozens of institutions. We'll also include the results from our 2nd Annual Business Banking Trust Study, detailing how end users view the online banking risk and the impact of fraud.
Speakers
Terry Austin, President & CEO, Guardian Analytics
Paul Dzurovcik, SVP, Deposit Operations/IT, Standard Bank & Trust Company |
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4:15 - 5:30 pm |
CONCURRENT SESSIONS (3)
1. MANAGING RISK WITHOUT BREAKING THE BANK: How Community Banks Translate Strategic Vision Into Effective Risk Management (for community banks)
Bank management is wrestling with a seemingly endless stream of new regulatory compliance and risk management requirements. Costs of addressing these mandates seem to be spiraling out of control. In this session, participants will learn how banks are effectively responding to these new requirements without impairing operational effectiveness and devastating earnings. We'll present insights and data that illustrate how best-practice banks are organizing, staffing and implementing Risk Management. We will share pragmatic approaches for developing a risk management culture that does more than just appease the regulators. It will permit risk to be managed in a more focused, cost effective manner than ever before, allowing the Bank to differentiate itself, improve earnings and mitigate the impact of future losses.
Speaker
Kenneth W. Proctor, Managing Director, Risk Management, Abound Resources, Inc.
2. AUTHENICATING CUSTOMERS AGAINST NEW THREATS
Discuss the new authentication guidelines put in place by FFIEC to protect financial institutions from fraud.
- Describe the various types of authentication that exist.
- What are the strengths and weaknesses of each of those authentication guidelines?
- What other complimentary approaches can financial institutions deploy in adopting a holistic fraud prevention strategy.
Speakers
Landy Dutton, Operational Risk Manager, First Bank
Michael C. Smith, LexisNexis Risk Solutions
3. REAL ESTATE - Risk Management Issues
Regulatory examinations focused on real estate loans are causing significant adverse migration in loan risk ratings. This has a profoundly negative impact on the bank's loan loss reserve and future provisioning. Bankers should not be blind-sided by this result at the exam exit interview. This session will show you how you can play an active role in anticipating the exam results and guiding bank management and loan personnel as they prepare for the examination.
Speaker
Susanna Tisa, Managing Director, Treliant Risk Advisors |
| 5:30 - 6:30 pm |
OPENING RECEPTION IN THE MARKETPLACE |
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Thursday, April 14, 2011 |
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7:00 am - 5:30 pm |
REGISTRATION OPEN |
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7:00 am - 8:00 am |
POWER BREAKFAST
GAME CHANGERS: HOW EMERGING SECURITY TECHNOLOGIES WILL HELP YOU MANAGE YOUR BUSINESS RISKS LIKE NEVER BEFORE
In just 45 minutes you will gain a fascinating look into the future of business security technologies as presented by one of the security industry's visionaries and technology development experts. More than describing the "what," Jay helps us understand why new technologies and business services will interact with efficiencies, and how these next gen solutions will innovate risk management and security operations for financial institutions in compelling new ways. From analytics to cloud computing to multi-factor credentialing, Jay will cover the cornerstones of Video Management, Identity Management, Physical Security Information Management, Life Safety, Emergency Communications and more.
Speaker
Jay Hauhn, Chief Technology Officer, VP—Technology & Industry Relations, ADT Security Services |
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8:00 am - 9:00 am |
GENERAL SESSION
BANKS AND THE ECONOMY – THE ENVIRONMENT IN WHICH YOU'LL BE OPERATING
Speaker
James Chessen, Chief Economist, American Bankers Association |
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9:15 am - 10:30 am |
CONCURRENT SESSIONS (4)
1. STRESS TESTING (for banks $10B+)
How to incorporate OpsRisk in stress testing
Speaker
Tara Heusé Skinner, Senior Risk Consultant, SAS
2. LOAN PORTFOLIO STRESS TESTING - Are You Doing Enough?
Stress testing at underwriting does not meet the requirements for Portfolio Stress Testing. Applying stress tests only to those loans for which you are tracking data, such as Net Operating income and Cap Rates, does not provide a true "portfolio view." Contrast limited approaches to portfolio approaches to extend stress testing to the broadest view of the credit portfolio for:
- Risk Migration Stress Testing
- Income/Value Stress Testing
- Interest Rate Impact
- Collateral Value Stress Testing
Speaker
Warren Cole, Senior Lending Consultant, Harland Financial Solutions
3. BANK ROBBERY RESPONSE AND INVESTIGATION: PROTECTING YOUR ASSETS AND YOUR CUSTOMERS
Having sound practices in place and training your branch teams to prepare for the risks and losses associated with bank robberies is vital, as it having the proper security technology. This session will focus on robbery response training, procedures and technology from the industry and law enforcement perspective, with a special emphasis branch video management systems.
Speakers
Stephanie Clarke, National Physical Security Manager, Key Bank
Chris Mullins, Banking Sales Director, American Dynamics
Phil Niedringhaus, Supervisory Special Agent, Federal Bureau of Investigation
4. DATA LOSS PREVENTION
Wiki Leaks: NASDAQ breach - how do these new threats impact risk management? What's on the horizon? Why DLP is important? Insider Data Theft can be a greater risk than external intrusion. Doing a pilot or proof of concept – you'll be surprised at the data leaving the organization.
Speaker
Robert Eggebrecht, President & Senior Partner, BEW Global |
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10:30 - 11:00 am |
BREAK IN THE MARKETPLACE |
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11:00 am - 12:15 pm |
CONCURRENT SESSIONS (3)
1. LOSS DATA COLLECTION
- Effective monitoring, measurement and reporting; and to provide the foundation for proactively mitigating risks across the organization
- Development of loss data collection framework, rules and processes to support risk mitigation objectives
Speakers
Erfan Karim, Basel II Operational Risk PNC
MaryAnn DiPinto, VP, Sr. Operational Risk Analyst, Operational Risk Management, Union Bank
2. CLOUD COMPUTING
Many IT professionals are attracted to cloud computing as a way to reduce costs and gain operational efficiencies, but are hesitant to implement it. Handing over control of critical business systems and sensitive client information to a third party can increase security risks.
After attending this session, attendees will:
- Know how cloud computing adds value to the organization;
- Understand different types of security risks associated withcloud computing;
- Be aware of various cloud computing configurations and authentication techniques that can be used to help protect sensitive client data.
- Know what to look for to determine whether or not the third party cloud environment that holds your organization's sensitive data is secure and reliable; and
- Be aware of best practices for assessing risk in the cloud, including tips for implementing and monitoring the control environment.
Speaker
L. Randy Marsicano, CISA, Manager – IT Assurance, Wolf and Company, PC
3. BEST PRACTICES - LIQUIDITY RISK MEASUREMENT & MANAGEMENT
Examiners are looking at liquidity policies and governance with renewed vigor. This session will introduce the basic types of liquidity management and the tools most banks use looking at stress testing and coordinating treasurer reports. We'll then take a practical look at one bank's experience – working with partners; appropriate actions for the management team; what constitutes a valid contingency funding plan; effective Board reporting.
Speaker
Orlando Hanselman, Education Programs Director, Risk and Performance Solutions, Fiserv |
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12:15 - 1:00 pm |
PEER DIALOGUE LUNCHEON |
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1:00 - 2:00 pm |
GENERAL SESSION
THE RISK CONTROLS OF TOP GUN
Lt. Colonel Jeffrey Lay will teach you to communicate risk in ways you never thought possible. He will teach you to brief your risk managers as if they were your wingmen about to fly into combat above the Persian Gulf in the dead of night and share the standards of top gun proven military debriefs to minimize tomorrow's risk. Lt. Colonel Lay's Wall Street and military background have made him a trusted advisor helping banks implement a culture and processes to communicate and to control risk.
Speaker
Jeffrey E. Lay, CMT, President and Co-Founder, Talon Eight |
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2:00 - 2:30 pm |
DESSERT IN MARKETPLACE |
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2:30 - 3:45 pm |
CONCURRENT SESSIONS (3)
1. INTERDEPENDENCY OF TRADITIONAL RISK DISCIPLINES AND OPERATIONAL RISK MANAGEMENT
- Impact of Operational Risk Management on liquidity, market risk and credit risk
- Review of operational components
- Interdependency of three major risk areas- how to integrate Credit/Market/Operational
- Positioning the OpsRisk function for better organizational performance
Speaker
Linda Grandstaff, Chief Operational Risk Officer, KeyBank, NA
2. NEW RISKS IN ATM SECURITY - Protecting Your ATM Channel From Malware
In a climate of increased ATM fraud and threats which can have a negative impact on the self-service channel if not addressed with appropriate security measures—financial institutions can no longer afford to take a reactive approach to detecting and preventing fraud attempts and attacks on their ATMs.
- Understand the ATM threat landscape as it pertains to logical security
- Learn how to avoid the most common pitfalls of logical security programs
- Gather best practices to implement a robust logical security program
Speaker
Chuck Somers, Vice President, ATM Security & Systems, Diebold Inc.
3. BEST PRACTICES FOR VENDOR RISK MANAGEMENT PROGRAM
Gain from the experience and perspective of risk managers who have each developed and implemented comprehensive vendor management programs within their organizations. Real-life examples of how to build a vendor management program from the ground up will be provided, as well as information regarding regulatory requirements that you should incorporate into your own program.
Speakers
Michael Edison, Chief Executive Officer, Fortrex Technologies, Inc.
Donald Saxinger, Senior Examination Specialist, Technology Supervision Branch, IT Section, Division of Risk Management, Federal Deposit Insurance Corporation
Carole Thomas, Vice President, Vendor Management Group, Rabobank, N.A. |
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4:00 - 5:15 pm |
CONCURRENT SESSIONS (3)
1. GOING MOBILE: ONLINE FRAUD MOVES TO MOBILE DEVICES
The increased deployment of financial services applications on mobile devices has benefited several groups of people. The bank's customers benefit from a convenient way to access their accounts. The bank benefits from a reduction of in-person transactions. And the criminals benefit – having a new, very convenient channel from which to launch their attacks.
In this talk we'll discuss the proliferation of mobile applications and how those applications are being used by the criminals to attack financial institutions. We'll look at a specific use case and show how the financial institution to detect and mitigate Man in the Mobile threats.
Speaker
Laura Mather, Founder, SilverTail Systems
2. EVALUATING AND MANAGING ENVIRONMENTAL RISKS
Our speaker will address:
- Environmental Risk Evaluation: trends and methods from new loans to pre-foreclosure; tiered due diligence; and regulatory oversight
- Environmental Risk Management: mitigation measures; lessons learned; SBA repayment; reputational risks
- Analyzing the environmental risks associated with commercial real estate
- Mitigating environmental credit risk
- Conducting proper due diligence
- Trends in environmental risk management
Speaker
Sharon Valverde, Sr. Environmental Administrator, JPMorgan Chase Bank, NA
3. BANK ROBBERY DATABASE
The ABA BANK-CAPture system provides a secure online portal to collect, analyze and disseminate aggregated incident data for robberies and burglaries as reported by ABA members. This session will update attendee's on the status of the system, discuss the merits of group analysis and highlight 2010 robbery trends.
Speakers
Larry Brown, Senior Vice President, First Citizens Bank
Brad Bryant, Unit Chief, Violent Crimes, Federal Bureau of Investigation
Stephen B. Longo, Vice President, Business Development, CAP Index
Shawn Swartout, Vice President - Security Director, Sterling Savings Bank |
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5:30 - 6:30 pm |
NETWORKING RECEPTION IN THE MARKETPLACE |
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Friday, April 15, 2011 |
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7:00 am - 12:00 pm |
REGISTRATION OPEN |
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7:00 - 8:00 am |
POWER BREAKFAST
LEVERAGING CREDIT SCORE CONSISTENCY AS A KEY FACTOR FOR UNDERSTANDING HOLISTIC CONSUMER RISK
Customer relationship management, CRM, for lenders who maintain multiple relationships with consumers is becoming increasingly complex and challenging to optimize. A critical element of an effective CRM strategy is an accurate assessment of holistic consumer risk. VantageScore Solutions provides insights and methods for leveraging credit score consistency as a key factor for understanding this holistic risk. The analyses demonstrate how consumer risk predictions can be tightened to deliver improved risk management strategies and improved profitability to the lender.
Speakers
Sarah Davies, SVP Analytics, Product Management and Research
Nick Rose, Senior Scientist, VantageScore Solutions, LLC |
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8:00 - 9:00 am |
GENERAL SESSION
IDENTIFY FRAUD RISK STRATEGIES IN A MOBILE, SOCIAL AND REAL TIME WORLD
Last year's identity fraud strategies are not enough to effectively protect profits, reputations and customers. Contrasting research of 5,000 consumers with mystery shopping of protection-practices at several banks and card issuers, this presentation highlights strategic gaps that leaders can address right now. The focus will be on how security and fraud has changed, where it could move next, and how bankers must change to balance traditional and emerging threats in both traditional and emerging customer-interaction methods.
Speaker
James Van Dyke, President and Founder, Javelin Strategy & Research |
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9:15 - 10:30 am |
CONCURRENT SESSIONS (3)
1. ACH RISK MANAGEMENT ASSESSMENTS
Effective management of ACH and cash management services risk requires resources from across the bank. Speakers will discuss challenges and best practices in managing these risks, including conducting periodic ACH risk assessments to improve risk management in the ACH Network and documenting resulting risk management programs, understanding and communicating components of ACH and cash management risk, customer education, marketing, fraud prevention and incident response.
Speaker
Dennis Simmons, AAP President & CEO, SWACHA
2. STRATEGIES TO REDUCE DEPOSIT ACCOUNT FRAUD LOSSES AND BUDGETS
With more than $1B in losses at North American banks and nearly $12B in attempts, it's surprising that many institutions consider deposit account fraud – specifically check fraud – a "covered" problem when reducing these costs could free up resources to strengthen defenses against other emerging fraud threats. This session will explore the impact of thinking of fraud as a "budgeted expense" which is under control as long as the budget is met and how new approaches can shrink fraud budget requirements and increase bank profits.
- Why the decline in check volume will not lead to a decline in check fraud losses or attempts
- Why deposit account fraud defenses are a critical component of a cross channel fraud management strategy
- A copy of a TowerGroup survey and report on deposit account fraud management techniques and perspectives that will be released in Q4 2010.
Speaker
Shirley Inscoe, Director, Financial Services Solutions, Memento, Inc
3. REDUCING THE RISKS OF WORKPLACE VIOLENCE
This session focuses on increasing awareness of the scope of the problem of workplace violence, knowledge of the company's policy on workplace violence, early warning signs, methods for de-escalating potentially hostile situations and employee's role in supporting the firm's workplace violence prevention effort. Special attention is focused on the importance of awareness and training, threat assessment prevention and response.
Speaker
Jon D. Groussman, President & COO, CAP, Index |
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11:00 am - Noon |
CLOSING GENERAL SESSION
THE NEW REALITIES OF STRATEGIC RISK MANAGEMENT - COMMUNICATION THE VALUE OF ERM TO C-SUITE
The financial crisis highlighted the interdependency of risks across an enterprise (credit, market, operational) and the need for holistic management rather than the traditional siloed approach. Learn how to leverage this increased emphasis on risk management to help get the tools for managing and monitoring the risks and promote more efficient and effective decision-making.
Speakers
Ana Foster, CRCM, VP, Risk & Compliance Manager, Cambridge Trust Company
Linda Grandstaff, EVP & Chief Operational Risk Officer, KeyBank, NA
Kevin Slane, EVP, Enterprise Risk Management, First Horizon National Corporation |
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Noon |
FORUM ADJOURNS |
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