When it comes to financial regulator exams, no institution will ever come away with a perfect result in that the examiner has zero findings. But that’s also the expectation, particularly in today’s world of heightened scrutiny. There’s always room for improvement. The surprising thing, however, is that bankers rarely ever push back.
In a recent survey, Safe Systems found that less than one-third of financial institutions ever challenge an examiners findings. That would seem that bankers are either complacent, or that they simply want to get the process over with. It doesn’t have to be that way. The survey data goes on to find that, of the institutions that push back on regulatory examiners’ findings, two-thirds of them are successful in amending or removing a finding in the examiner’s final report.
So why don’t bankers stand up for themselves, especially when it increases the likelihood of a better examination? That answer probably rests with each financial institution.
Perhaps an easier question is, how can banks and credit unions be more successful in regulatory examinations? One answer, at least, is documentation.
Better documentation won’t necessarily make the intimidating process of regulatory examinations easier, but it can go a long way toward improved performance on those exams. And it can be the foundation of a strong case to amend or remove an examiner’s findings. Documentation in and of itself won’t change everything. There’s much more going on at a bank. But it’s a step in the right direction.
Read more tips on improving processes to achieve a more successful IT examination here.