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Helping financial institutions succeed Helping you to better anticipate andFinancial institutions must manage an array of business manage business risks involves taking achallenges, including ensuring regulatory compliance, strategic approach to mitigating threatsidentifying and mitigating risk, monitoring asset quality and increasing opportunities to enhanceand planning strategically for the future. But performing business performance.all such tasks internally isn’t feasible or practical formany institutions. Services provided by McGladreyFor these sensitive functions, partnering with a trusted Assurance servicesfirm with experience in your industry allows you to The client service team assigned to your audit will bemaintain optimal staffing levels. Additionally, it helps composed of professionals with knowledge of financialensure independence while bringing new perspective to institutions. Audit procedures will be tailored to addressthe integrated, long-term outcomes you need. risks specific to your institution – enabling a reliable independent audit that helps you plan for the future andOur commitment to your industry identify areas where you can become more effective.McGladrey serves over 2,000 financial institution clients Our partners and directors are extensively involved innationwide, including banks and savings institutions, trust the audit process and actively communicate with yourorganizations, credit unions, mortgage companies, and institution’s leadership. We believe regular, partner-levelfinance and leasing companies. Clients range from newly attention is what you deserve - it’s how we add value tochartered institutions to institutions with billions of dollars the audit process.in assets.Our audit, accounting, tax and business consulting Tax preparation and planningprofessionals are committed to adding value in our In the realm of tax preparation and planning, deadlinesservices for these organizations. and compliance are important. But they are only part of what you need to consider when taking a businessMcGladrey & Pullen ranks as the fifth largest U.S. approach to managing your tax exposureprovider of accounting, tax and business consultingservices (source: Accounting Today), with 6,500 Our tax professionals will assess your overall tax structureprofessionals and associates in more than 70 offices. and help you identify any opportunities to reduce tax liability. We’ll also take a closer look at key areas of your operations to ensure you’re doing business in a tax- advantaged manner, including utilizing all available tax credits.
Our tax advisors can provide guidance on various issues Lack of expertise or experience in a given area ofrelated to ownership structure changes. And if you’re operations is another concern. Without adequateconsidering an acquisition, merger, sale or liquidation, knowledge and a broad base of experience, an auditorour tax professionals can assist you with due diligence can’t provide value or insight into the department orand help you structure complex transactions in the most function being audited.advantageous manner. To avoid such situations and ensure a knowledgeable,Risk management strategy independent and effective internal audit, many institutions choose to outsource their internal audit function.Your day-to-day business activity involves analyzing anarray of risks, including those associated with credit, Our approach to internal audit focuses on processesinterest rates, liquidity, security and compliance. and procedures established by management. Once we understand your operations and tone at the top, we tailorToday, risk management requires testing and assessing a an approach that will align with your risks, as well as yourvariety of controls – a process that goes far beyond what business objectives.was once adequate. A comprehensive risk managementprogram for financial institutions encompasses the From this vantage point, we can help you better foreseefollowing areas: and manage risks – thereby allowing you to mitigate threats and increase opportunities for enhanced• Internal audit business performance.• IT security and controls• Regulatory compliance IT security and controls• Loan review An information technology failure or breach of security canInternal audit cause serious financial damage and harm an institution’s reputation. For these reasons, as well as legal andFor financial institutions, nearly every activity involves risk regulatory considerations, financial institutions should– whether it’s making a loan, opening a deposit account, obtain an independent review of general controls, conductconducting a wire transfer or purchasing securities. security testing for Internet-based activities and ensureAn internal audit should help management recognize, adequate business continuity planning.evaluate and control risk in these and other areasof operations.But for some organizations, maintaining an internal auditdepartment may not be practical. In resource-strappedenvironments, internal auditors may be called uponto assist with monthly closing of the general ledger orreporting to the cashier or president – the same peoplethey are expected to audit.
General controls review. Establishing controls begins comprehensive program of identifying and minimizing thewith management and the board of directors who potential for, and impact of, an operational interruption,must determine appropriate policies and procedures. coupled with advance preparation. A business continuityHowever, implementation of firewalls and other internal plan does not simply help ensure recovery from aand external security measures often require significant major disaster such as a fire or flood, computer crimetechnical knowledge. or terrorism; it also helps assure your critical operations continue every day, in the face of temporary disruptionsMany banks simply don’t retain personnel with this level of like power or network outages. An optimized businesstechnical expertise. Nor is it prudent for staff who manage continuity plan allows your organization to:and support the bank’s systems to conduct such reviews. • Identify and mitigate risks before a disaster occursAny information security professionals you engage for • Comply with regulatory requirementsa general controls review should be certified in their • Minimize disruptions to critical operationsrespective areas of practice. Our IT specialists are certified • Protect your customers, employees and assetsin a variety of information security areas and participate in • Ensure organizational stabilityongoing training and education to maintain the highest • Provide for an orderly recoverystandards of the profession. • Reduce potential legal liabilitySecurity testing of Internet-based activities. External • Minimize decision-making time during athreats to your business can take a number of forms. disaster eventBut Internet-based activities – which often involve Our advisors, many of whom are Certified Businesstransmission and storage of private customer data – can Continuity Professionals (CBCPs), have developedpresent an especially sensitive target. hundreds of plans for financial service organizations acrossOur technology risk management professionals will work the nation. Our comprehensive, industry-focused, businesswith you to assess network and application security and continuity consulting services include:conduct penetration testing – helping you to effectively • Business impact analysismitigate potential exposure to unauthorized access. • Continuity plan development, reviewBusiness continuity planning. It is our view that business and enhancementcontinuity planning is the process of risk identification and • Design and facilitation of testing exercisesreduction, coupled with advanced planning to ensure your • Staff trainingorganization can survive an unforeseen crisis. Business • Development of plan maintenance strategiescontinuity planning is more than a document; it is a
Regulatory compliance Loan reviewsThe financial industry has always been subject to its share A loan review helps ensure your institution is activelyof regulation, including those mandated by the FFIEC, managing and monitoring credit risk within the loanSarbanes-Oxley legislation, the Bank Secrecy Act and Anti- portfolio. While loan reviews are indispensable for aMoney Laundering legislation number of regulatory and operational reasons, conducting this process internally presents challenges for financialOver the last several years, regulatory agencies have institutions of all sizes.implemented risk-focused examinations to evaluatefinancial institutions’ safety and soundness. Examinations When faced with issues such as limited staffing andalso assess areas such as internal controls, financial “depth of bench,” we can help you achieve your loancondition and compliance with applicable laws and review objectives.regulations. An institution’s most vulnerable areas receive We offer full-service loan review solutions for a varietythe greatest scrutiny. of lending products and services. Whether you needA comprehensive and effective compliance program will assistance with assessing documentation and compliancehave the following components: with established underwriting guidelines, managing credit risk or another critical function, our services will be tailored• Management support for your needs.• Functional responsibility• Internal controls Corporate governance• Up-to-date information Regardless of an institution’s size, building strategic board• Training capabilities is essential. You need a board of directors who• Testing will ensure regulatory compliance, boost customer and• Reporting investor confidence, and foster long-term success.• Follow up But board development is a time-consuming andWe also offer risk assessment, operational effectiveness challenging task, and qualified candidates are increasinglyassessment and program reeingineering as well as difficult to recruit.independent testing and technology services forBSA/AML compliance. Our consultants can work with you to recruit and assess candidates while building capabilities of your existingWe can perform annual, semi-annual or quarterly board. We’ll also help you define roles and responsibilities,compliance testing related to lending, deposits, create competency-based assignments and promote aadvertising and other areas of concern. Our consultants climate of trust, accountability and communication.can also help you develop policies and procedures andprovide training on regulatory topics.Our minimally disruptive compliance examinations allowyour personnel to stay focused on business operations.
Our services related to corporate governance We offer a range of compensation services, including:functions include: • Base salary compensation and administration• Working with management to prepare a • Employee incentive compensation strategic plan • Executive and management compensation• Developing director and executive • Sales compensation compensation strategies As part of the plan development process, we identify• Establishing audit and finance guiding principles and compensation program committee processes characteristics that support these principles. Our• Conducting CEO evaluations and managing consultants assess how well current programs meet these CEO succession principles, identify any gaps and develop alternative• Evaluating compliance with legal and approaches as needed. regulatory requirements• Recruiting and assessing board candidates We consider a mix of fixed and variable compensation• Developing a climate of fiscal accountability plans and develop a compensation program that’s aligned with your strategic objectives. This helps supportWe can also conduct a diagnostic review of your existing strategic business objectives while controlling totalcorporate governance structure. This involves activities compensation costs.such as evaluating roles of the board, individual membersand management – and their interaction with each other. We help build your compensation plan around theAdditionally, we’ll conduct board member orientation following elements:and education, assess board and committee structure andprocesses, and review communication and information • Base salaryprotocols to ensure best practices are being upheld. • Short-term and annual incentives, including cash or stock bonuses and individual, team or company-Executive compensation based performance incentivesCompensation plans are integral to attracting, motivating • Long-term incentive plans, including stockand retaining top executives. They can also be a valuable options, stock appreciation rights, phantom stock,tool in keeping your institution on track toward meeting performance shares and deferred compensationperformance goals. • Perquisites • Fringe benefits, including employee benefits andWhile most businesses understand the benefits of a well- qualified profit-sharing/pension plansdesigned compensation plan, developing a successfulprogram can be a daunting and complex task. We can helpyou develop an executive compensation plan that sets youapart from competitors while providing key advantages foryour institution.
Strategic planning Strategic IT planning. Your information systems are a critical resource for your organization, helping you gainStrategic business planning. Financial institutions that a competitive advantage, bolster staff productivity andresearch, develop and implement strategic plans are enable your organization to run more effectively. They’repositioned to effectively deploy capital. Their decisions also continually changing. To keep your informationare based on consensus from an informed management strategy aligned with your organization’s business goals,team. And they typically implement change to proactively you need a long-range plan that addresses currentmanage the institution to stay on track toward achieving and future systems requirements. That’s why strategicits goals – rather than simply reacting to competition and information technology planning is critical to your success.other challenges. Our seasoned, financial institution-focused advisors helpOur professionals have the knowledge and skills to to build an information technology plan that is morehelp your organization develop and implement a closely integrated and aligned with your organizationalcomprehensive and detailed strategic plan. We work with strategy. Our approach to strategic information technologyyou on all aspects of your strategic planning process to planning often includes the following:help you carve out a distinct competitive advantage foryour institution. Strategy consulting services include: • Analysis of information and needs gathered through in-depth interviews with your• Comprehensive strategic situation assessments management team and staff• Professionally delivered and facilitated strategic • Identification of requirements planning retreats • Prioritization of system improvement opportunities• Leadership coaching and training • System selection and vendor negotiations• Support services for stakeholder communication• Co-implementation services For more information on how McGladrey can work with• Plan authorship and documentation services your financial institution, visit www.mcgladrey.com.Our consultants use a planning process that helps youdetermine what you want your organization to look likein the future. With this vision in mind, you’re poised tooptimize potential in the right markets, organize internallyto meet challenges, overcome operational obstacles, andmeet and exceed growth goals.