Oversee Financial Performance and Risk Reporting in Banking
Source: Comptroller's Handbook
Performance and Risk Reports:
- understand the drivers of financial performance.
- understand and evaluate the potential impact of business units and their risk on financial performance.
- assess the adequacy of capital, liquidity, and earnings.
- monitor performance trends and projections.
- monitor financial performance against strategic goals.
- monitor risk positions in relation to the risk appetite, limits, and parameters.
- monitor the types, volumes, and impacts of exceptions to policies and operating procedures.
- understand model risks and reliance.
- assess the impact of new, modified, or expanded products or services.
- assess evolving risks related to changing technologies and market conditions.
- monitor risks related to third-party relationships involving critical activities.
- assess potential litigation costs and reserves.
Useful performance reports are likely to include, but are not limited to, the following information:
- Financial statements and peer comparison reports
- Budget variance reports
- Metrics on key risks
- Asset quality indicators and trends
- Allowance for loan and lease losses analysis
- Concentrations of credit
- Liquidity position and trends and contingency funding plans
- Interest rate sensitivity analyses
- Performance metrics for new, modified, or expanded products and services
- Outsourced critical activities
- Off-balance-sheet activity and exposures, including derivative exposures
- Growth rates and projections
- Capital position, trends, and capital adequacy assessments
- Key business unit performance
- Policy exception monitoring reports
- Performance measurements and metrics for risk appetite, performance goals, and strategic goals
- Earnings trends and quality, including non-interest income and expenses
