Philadelphia, PA (October 30, 2003)—RMA—The Risk Management Association has recently published the results of a study of risk management practices at community banks. This comprehensive update of RMA's pioneering 1998 study, Beating the Odds, indicates that community banks are moving beyond their traditional focus on credit risk.
The executive summary of the new study is posted on the RMA Web site at www.rmahq.org. (The full study is available for purchase by all interested parties; RMA members receive a substantial discount.)
With 160 institutions participating, this benchmarking study, conducted by RMA and Verrone Consulting Group, Inc., helps define the risks community banks face today and how to assess, monitor, manage, and control the different risk types.
The initial study, the first of its kind to offer guidance in fundamental risk practices, became a valuable benchmarking tool for community banks. It is expected that the updated study will prove even more valuable.
Mark Zmiewski, RMA's director of Information Products, said, "Beating the Odds: Revisited is a more wide-reaching study that provides an inventory of current risk management practices. It identifies practices that influence safety and soundness, promoting best practices. The updated study also shifts the focus to institutions smaller than those covered in the original study."
New topics in this study include operational risk and enterprise-wide risk management, which complement the study's core topics, including:
- Portfolio risk management.
- Risk grading.
- Credit approval and credit scoring.
- Market risk and business risk.
- Credit risk pricing and profitability.
- Securitization and participations.
- Staffing and resource management.
- Credit database and accounting.
- Credit allocation and reserves.
To purchase Beating the Odds: Revisited, contact RMA's Customer Care at 1-800-677-7621 or order online at www.rmahq.org (Product No.: 613811). The cost is $245 for RMA members and $375 for nonmembers.
RMA is a member-driven professional association whose sole purpose is to advance the use of sound risk principles in the financial services industry.
Founded in 1914, RMA promotes an enterprise-wide approach to risk management that focuses on credit risk, market risk, and operational risk. Headquartered in Philadelphia, Pennsylvania, RMA has about 3,000 institutional members that include banks of all sizes as well as nonbank institutions. They are represented in the Association by 16,000 commercial loan, credit, and risk management professionals in the 50 states, Puerto Rico, Canada, and numerous foreign cities, including Hong Kong, Singapore, Melbourne, and London. More information about RMA can be found at www.rmahq.org.