Verittas Risk Advisors offers enterprise risk management and a range of consulting services to clients with assets between $100 million and over $50 billion, leveraging over 20 years of banking expertise. Their capabilities include capital planning, liquidity management, compliance services, and stress testing, with a focus on practical risk identification and mitigation. The firm has successfully aided numerous institutions in regulatory compliance and strategic planning to navigate the complexities of the banking environment.

1. Overview of Capabilities
January 2015

2. About Verittas Risk Advisors
 Clients across the U.S. ranging form $100 million to $50+ billion
in assets.
 Over 20 years of banking experience in roles such as CEO,
President, CFO, big 4 audit partners, etc.
 Highly skilled staff to assist on engagements
o CPAs
o CRCMs
o JDs
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3. General Capabilities Provided
 Enterprise Risk Management
 Capital & Strategic Planning
 Liquidity and Contingency Funding Plans
 Stress Testing of Capital & Liquidity
 Regulatory Remediation
 Business Process Optimization
 BSA/AML & Compliance Services
 Model Validation Testing
 Outsourced Internal Audit
 CRE Lending Strategy & Credit Administration Assistance
 Bulk Loan Purchases
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4. Enterprise Risk Management
 Take a practical approach to ERM
 Link to other areas such as Capital & Strategic Planning
 Systematic Process to Identify Risks & Opportunities – enterprise-wide
 Evaluate Impacts across All Regulatory Risks
 Empower the Board and Management to Identify, Evaluate,
Mitigate & Exploit Internal and External Risks:
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o Cyber/IT
o IRRM/Market
o Compliance
o Credit
o Liquidity
o Operational
o Fraud
o Internal Audit
o Accounting/Reporting
o Strategic
o Reputation/Legal Risk

5. Capital Stress Testing
 Comprehensive Capital Analysis & Review (CCAR) – Applicable to Bank’s
> $50B in Consolidated Assets
 Dodd-Frank Annual Stress Test (DFAST) – Applicable to Banks > $10B in
Consolidated Assets
 CCAR Incorporates the BHCs Capital Outflows and Capital Planning
Process
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6. Liquidity Stress Testing
 Required under Interagency Guidance on Funding & Liquidity Risk
Management
 Must ensure sufficient diversified funding sources
 Liquidity Stress Testing should include key liquidity metrics:
o Liquidity Ratio
o Loans to Deposits
o Bank Policy Metrics
o Liquidity Coverage Ratio (LCR) – applicable to institutions with > $10B in
assets, but best practice is to include
• Generally must have High Quality Liquid Assets (HQLA) > 100% of 30-day
outflows
o Net Stable Funding Ratio – Compliment to LCR, but Longer-Term Analysis
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7. BSA/AML Program
 Zero Tolerance Environment for BSA/AML
 Highly Nuanced Risk Assessment Process
 Must Validate All Aspects of the Monitoring Software
 Data Integrity is Critical
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8. Representative Projects
 Assisted a multi-billion institution to design and
implement an ERM strategy in conjunction with a
regulatory enforcement action. Successfully guided
the institution through the process and the release of
the formal agreement.
 Assisted a $5 billion institution to perform BSA/AML &
OFAC Risk Assessments, BSA/AML Software
Validation and Data Integrity Testing to resolve
outstanding Regulatory findings.
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9. Representative Projects
 Assisted a $1.5 billion Bank and Holding Company to
revise its strategic plan and business strategies to
address realities of the current banking
marketplace. This included the documentation and
implementation of a liquidity & capital stress testing
regimen. Assisted the holding company with
evaluation of alternatives to increase both holding
company and bank capital levels to comply with
regulatory requirements.
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10. Representative Projects
 Assisted a $50+ billion federally chartered bank to
redesign the entire consumer credit underwriting
process and adverse action notification system to
reduce regulatory compliance exceptions and fair
lending issues.
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11. Representative Projects
 Several Banks with assets ranging from $100 million to
$2.5 billion have used Verittas to prepare
Management Evaluations, Board Governance
Reviews, Capital Plans, Profit Plans, Strategic Plans,
Credit Remediation Plans, Contingency Funding
Plans, Stress Testing Regimens and Interest Rate Risk
Management Plans to comply with various OCC,
FDIC and Federal Reserve Enforcement Actions.
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12. Representative Projects
 An FDIC/State regulated Bank engaged us to assist
in mortgage origination and consumer lending and
servicing regulatory issues, including those raised by
the FDIC and a State Attorney General’s office.
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13. Representative Projects
 We assisted a federally regulated bank to assess its IT
security and identified serious security issues throughout
the bank. Through a combination of weak levels of user
security awareness training and poor laptop
configuration, a bank employee with a laptop inserted
a malicious USB thumb-drive file, causing complete
laptop compromise, which our ethical hacker used to
obtain complete network compromise, including LOS
application, customer data breach, and a gateway
into other bank systems in a federally insured bank.
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14. Representative Projects
 An $8 billion commercial bank engaged Verittas to
revise its existing mortgage banking process from
initial customer contact through servicing and
securitization. We re-engineered the Bank's
processes and IT systems to improve profit, improve
compliance, reduce errors and repurchase risk.
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15. Representative Projects
 Acquired by a $100 billion+ international banking
holding company, a domestic bank engaged us to
assist with business strategy revision, capital plan,
strategic plan, loan workout plan, compliance and
accounting issues related to an OCC Regulatory
Order. Within a few months of the acquisition, the
Order was lifted.
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16. Contact Information
George Mark, CEO & President, Verittas Risk Advisors, Inc.
T: 646.634.1945 Email: George.mark@verittas.com
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