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How Banks Can Prepare for the FDIC’s Proposed Standards

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In what is seen as a significant shift, the Proposed Standards will move away from the reliance on state law in favor of establishing governance and oversight obligations for banks. Among the areas expected to see change within compliance management of these banks will include obligations, board composition, duties, and committee structure.

Banking 98
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Silicon Valley Bank (SVB) Failures in Risk Management: Why ERM vs GRC

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Silicon Valley Bank (SVB) Failures in Risk Management: Why ERM vs GRC By Steven Minsky | May 5, 2023 Silicon Valley Bank (SVB) was closed by regulators and reminded us of the recession associated with Lehman Brothers and Washington Mutual Bank in 2008.

Banking 98
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Best Practices for Payroll Internal Controls

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For these reasons, it’s critical to develop a strong payroll process, identify any risks, and implement robust control activities to mitigate those risks. Audits can confirm that the payroll system is running correctly and reveal whether the organization is accurately fulfilling its payment and tax obligations.

Audit 52
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What is the Three Lines of Defense Approach to Risk Management?

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The proposed standards emphasize a stronger corporate governance and include an over-arching requirement for these banks to adopt the Three Lines Model. They are the ones who “own” the risk and are responsible for taking actions to mitigate it. This includes risk management, compliance, and internal control departments.

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Internal Controls to Prevent Financial Statement Fraud

Reciprocity

Internal controls assure the audit committee, board of directors, and senior management that the company’s financial reporting is reliable and compliant with applicable laws and regulations. Examining canceled checks (processed and cleared by the bank) is vital to assure that only authorized personnel sign checks.

Audit 52
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Internal Controls to Prevent Financial Statement Fraud

Reciprocity

Internal controls assure the audit committee, board of directors, and senior management that the company’s financial reporting is reliable and compliant with applicable laws and regulations. Examining canceled checks (processed and cleared by the bank) is vital to assure that only authorized personnel sign checks.

Audit 52
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What is the Three Lines of Defense Approach to Risk Management?

LogisManager

The proposed standards emphasize a stronger corporate governance and include an over-arching requirement for these banks to adopt the Three Lines Model. They are the ones who “own” the risk and are responsible for taking actions to mitigate it. This includes risk management, compliance, and internal control departments.