2. To ask a question during the webinar, feel free to enter it into the chat box
along the right hand side of your screen. Slides are available there, too.
Link to download slides
Area to enter questions or
write-in poll answers
3.
Financial information company that provides
credit and risk management solutions to
financial institutions
Data and applications used by thousands of
financial institutions and accounting firms
across North America
Awards
◦ Named to Inc. 500 list of fastest growing privately
held companies in the U.S.
◦ Named to Deloitte’s Technology Fast 500
4.
RMPI Consulting provides process improvement,
enterprise risk and credit management services to
Community Banks throughout the credit life cycle. Its
thought leadership has defined industry “best
practices” on a broad range of risk management
services.
With over 25 years of banking experience each, every
managing partner understands how to advise financial
institutions throughout the economic cycle. The firm
has offices in Boston and Tampa.
5.
Regan Camp
◦ Regan is a senior risk management consultant at Sageworks,
where he serves as a specialist in assisting financial
institutions with accurately interpreting and applying federal
accounting guidance. His primary focus is allowance for loan
and lease loss provisions (ALLL) and stress testing loan
portfolios.
Jay Gallo
◦ Jay is a partner in RMPI’s banking practice. He directs business
strategy, process redesign and enterprise risk management for
clients. Prior to joining RMPI Consulting, Jay worked as risk
management consultant at Fair Isaac Corporation in their
banking practice.
7.
Cascading effects of errors
Inconsistency between locations and
employees
Version control issues
Non-transferable risk management processes
Data security
Accessibility of historical data for use
Documentation of calculations and processes
9.
Everyone knows it – and has it
Been around for decades (1st version of Excel
launched in 1985)
Doesn’t take a lot of training
Many (free) available resources – YouTube,
coworkers, forums, etc.
10.
The risk of becoming over-reliant and/or
complacent
Availability of resources can become doubleedged sword
Setup of a spreadsheet is often only familiar
to the creator – each user has their own
preferences
11.
Dual control – at least 1 other person is
reviewing for errors
Be selective in your resources
12.
Familiar with equations
Can create multiple tabs/spreadsheets
Blank canvas – no constraints
Flexibility – incorporate your preferences
13.
Blank canvas – must create from scratch
No coding to prevent errors/wrongdoings
14.
Secure the calculation/spreadsheet
Maintain an audit log
Educate yourself first – follow best practices
Not too many “cooks in the kitchen”
Save often, store multiple copies, use a
working copy
15.
Ability to run query, vlookup tables, set up
macros, etc.
Copy/paste – a lot of data is already captured
Data tracked already – easy transition
Can export data to spreadsheet program via
core, report writer, etc.
16.
Difficult for multiple users
Gathering of data – not an automated way – no
underlying database
Changes in spreadsheets are difficult to track
Difficulty in capturing and building historical
trends
For reporting, pulling from multiple data sources.
Data security threats
◦ Since there is no underlying database, can be more errorprone and complex – ex: ASU2010-20 Disclosure Reports.
17.
18.
Save often, store multiple copies, and use a
working copy
If using spreadsheets, use them for a variety
of functions
◦ Ex: Store all data in spreadsheets, instead of utilizing
a word processing program in some instances
19.
Program itself is consistent
Data sharing/universality – pick up from one
place, move to next, it is going to be
consistent
Can be consistent in usage
20.
Lack of consistency between institutions, and
among employees within an institution
Version control issues
Lack of consistency in output
No standard documentation
21.
Establish policies and procedures that can
serve as the guideline/blueprint
◦ Define the desired output
At least one individual should take ownership
◦ If there are multiple people inputting data, but no
ownership, problems could ensue
Minimize how often the spreadsheet changes
hands
22. Pros
User experience isn’t necessarily complex.
Familiarity can reduce the complexity
Cons
Multiple tabs, multiple worksheets, multiple
users
Getting data into the document
23.
KISS – “Keep It Simple Stupid”
Keep others in mind during creation and
updates
◦ Document your changes as much as possible
Establish formal policies and procedures to
provide the roadmap
Ensuring consistency minimizes the negative
effect of complexity
24. Pros
Control: As guidance changes, you can
quickly adapt if knowledgeable
Timely adaptations
Cons
Responsibility to keep up, implement
Limitations to accommodating regulatory
guidance
◦ “It is likely that many banks, particularly community banks,
currently do not have readily available the types of data that
would be needed to implement the CECL model.”
- FDIC
25.
Utilize available resources to enable others to
do the interpretation for you
◦ Sageworks’ webinar
series and whitepapers
◦ 3rd party consulting
and accounting firms
◦ Join bankers forums,
such as the
ALLL Forum for Bankers, to look for collaboration of
experts/ideas/knowledge
◦ Leverage other’s knowledge and experiences – look for
actual spreadsheet examples
26. Pros
Calculations are automated
Control over calculations
Cons
Multiple tabs, multiple worksheets, multiple
formulas – one minor change can have a
significant effect
◦ “Spreadsheets, even after careful development, contain
errors in 1% or more of all formula cells.”
–Ray Panko, Univ. of Hawaii
27.
Automate cells with built-in formulas
whenever possible
Have it reviewed, audited, validated.
Minimize changes – be consistent with
processes, people, etc.
28.
Brief, 8 question-survey
Better prepare for your next OCC, FDIC, Federal
Reserve or NCUA exam
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report with compiled survey results
All participants entered into a drawing to
receive one of two $100 Visa gift cards
All survey responses are anonymous
Take the survey here
