Loan concentrations may not constitute a risk to financial institutions unless the concentrations are not properly monitored, managed and supported by adequate capital. What often happens is market demand results in loan concentrations that management and the board notice after-the-fact. Those concentrations may later be viewed by regulators as risky.
When market and economic conditions are improving, concentrations can result in significant profit improvements for institutions. But when conditions deteriorate the resulting impairments and losses begin to surface and loan concentrations can be especially ripe for criticism. Without proper oversight, it may be too late to protect the institution from outsized losses that could result from having loan concentrations. Many institutions remember what happened during the real estate bubble with concentrations of once profitable commercial real estate loans.
Ideally, institutions will have a concentrations oversight program in place to ensure that, any concentrations that exist, are properly monitored, managed and supported by adequate capital. This timely webinar discusses how the institutionâ€™s internal audit function can conduct a risk-based audit of the institutionâ€™s concentrations oversight program.
Please join Gary Deutsch as he provides essential guidance on how to conduct an audit of the concentration oversight process that can also be useful for those involved with the loan administration process.
WHAT YOUâ€™LL LEARN
What this webinar will cover:
- Review managementâ€™s concentration assessments
- Evaluate the adequacy of the risk management process to detect concentrations
- Review board and management concentrations oversight related to:
- Portfolio management
- Portfolio stress testing and sensitivity analysis
- Credit risk review function
- Market analysis
- Assessment of capital adequacy
- Adequacy of management information systems
- Evaluate the status of supervisory oversight of concentrations
- AND MUCH MORE!
YOUR CONFERENCE LEADER
Your conference leader for "Conducting a Loan Concentration Auditâ€ is Gary Deutsch, president and founder of BRT Publications LLC. Mr. Deutsch is a licensed CPA in Maryland and has a B.A. in accounting and an MBA in finance from Loyola University Maryland. He has also achieved the Certified Management Accountant, Certified Internal Auditor and Certified Bank Auditor designations.
Mr. Deutsch has trained thousands of financial institution professionals in all aspects of risk management and has written numerous books in the U.S. and Europe on topics such as credit risk, internal audit and compliance with Generally Accepted Accounting Principles. Mr. Deutsch has extensive risk management and internal audit experience through his association with financial institutions of all sizes as well as through his role leading the KPMG financial institution consulting practice in the Mid-Atlantic region.