The Daily Dividend: FMS Publications

News, notes and insights from around the industry

AUGUST 14, 2019
The Summer of CECL
By Mark Loehrke, Editor, Financial Managers Society

The summer of 2019 has been an interesting period in the ongoing journey toward CECL. The big news, of course, was FASB apparently deciding to push back the implementation deadlines by a year for non-public companies – a development which no doubt was greeted with relief by plenty of institutions that were scrambling to get their plans in order. 

But, as most industry observers have noted in the wake of this news, while that additional cushion may provide a little breathing room to banks and credit unions that had found themselves a bit behind in their preparations, it did not in any way let them off the hook. CECL is still coming, in other words, and the bonus time afforded by this development should be best seen not as a reason to stop paying attention to the new standard for awhile, but rather an opportunity to gather the data and marshal the resources your institution needs in order to make sure it’s on track for the new deadline. 

That’s why it’s a great time to get some late-summer reading done in CECL Central, our convenient and comprehensive warehouse of CECL expertise, information and commentary – which includes a couple of recent FMS Perspectives articles as the latest additions to the collection:  

CECL: Overcoming Key Challenges
Nick Ansley of Wipfli LLP reviews three of the common CECL challenges that banks and credit unions are wrestling with and outlines a few ideas for working through these issues.

CECL Status Check: How Prepared is Your Institution?
Rick Martin of Fiserv lays out seven key CECL tasks that will not only help banks and credit unions ensure they have the right data (and enough of it), but also offer the potential to save time and money down the road.  

Be sure to use your CECL bonus time wisely – check out the latest information in CECL Central today!
 

AUGUST 12, 2019
FMS Perspectives: Breaking Down the Silos in Managing Risk
By Mark Loehrke, Editor, Financial Managers Society

FMS Perspectives: Breaking Down the Silos in Managing RiskAs regulatory guidance for institutions has expanded in scope over the past several years, the overlap between different areas of risk management has grown significantly. Whereas individual risk elements such as business continuity planning, cybersecurity and vendor management could once be thought of and dealt with as standalone elements of an institution’s operational risk management program, these days they are much more intertwined – which is why it has become so important for institutions to employ a more cohesive top-down risk strategy to help reduce or eliminate the redundancies, inefficiencies and discrepancies of the past. 

Breaking out of longstanding risk compartmentalization is no easy task, however. In our new FMS Perspectives piece, Breaking Down the Silos in Managing Risk, Michael Berman of Ncontracts explains why managing risks individually is almost always a waste of resources and lays out the case for how eliminating silos through a cohesive ERM program can be a path to better oversight, greater efficiency and lower costs.
 

AUGUST 6, 2019
Three Years Hence
By Mark Loehrke, Editor, Financial Managers Society

Three Years HenceIt’s hard to believe that 2019 already marks the third year that we’ve been fielding our Community Mindset proprietary industry research survey. In addition to our satisfaction in being able to continue to provide this valuable resource to FMS members, having three years of data has also allowed us to recognize some of the interesting trends and themes that have developed over that time span, several of which are outlined in our new Trending Topics piece.

From the growing importance of succession planning and mobile banking to the continued prevalence of technology and attracting new customers to the declining impact of regulatory burden, this is a fascinating snapshot of what has – and what hasn’t – changed for community banks and credit unions over the past three years.
 

 

JULY 31, 2019
Looking Back at forward
By Mark Loehrke, Editor, Financial Managers Society

As we put the finishing touches on the upcoming September-October issue of FMS forward, there’s plenty of buzz around the industry on some of the topics we covered in the July-August issue. So continue your summer reading by exploring a few of those ideas in greater depth around the web.

If you were interested in what our panelists had to say about The Pulse of Profitability in the July-August cover story, you may want to check out some of the numbers backing up those opinions in two recent reports – the joint FMS-Kaufman Hall survey 2019 Profitability Perspectives and the profitability section of the proprietary FMS study Community Mindset 2019.   
 
In Building on Blockchain we take a look at how some companies and big banks are actually putting the promise of blockchain into practice, a point further driven home by the recent announcement of yet another foray into this potentially transformative technology, as IBM has launched a pilot program with a new digital platform using blockchain technology to re-imagine how businesses obtain and manage bank guarantees required for retail property leases.
  
Finally, if our fintech story in this issue has you contemplating A Fintech Path Forward, you may be interested in the six reasons to have a fintech strategy.

Believe it or not, autumn is almost upon us, which means our September-October issue is just around the corner (look for it later this month), but in the meantime there’s more to explore on the critical topics of profitability, fintech and blockchain.
 

JULY 22, 2019
FMS Perspectives: Overcoming Key CECL Challenges
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society

Financial institutions face a number of significant issues as they prepare to adopt the new CECL impairment model. As implementation deadlines begin bearing down on many institutions, it may be helpful to review three of the common challenges banks and credit unions are wrestling with and to consider a few ideas for working through these challenges.

In our latest FMS Perspectives piece, “CECL: Overcoming Key Challenges”, Nick Ansley of Wipfli explores the biggest CECL roadblocks and offers recommendations for how to overcome them. Developing a compliant CECL calculation is a substantial project, but by anticipating the challenges and allowing enough time to work through them, institutions can emerge with strong solutions.
 

JULY 17, 2019
Profitability Perspective
By Mark Loehrke, Editor, Financial Managers Society

Profitability PerspectiveFor the second straight year, FMS and Kaufman Hall have teamed up to find out what senior finance professionals in banks and credit unions across the country are doing to measure profitability in their institutions – and what they think they needed to be doing better. 

The result of that effort is the new 2019 Profitability Perspectives report, a compilation of the thoughts and insights of more than 110 respondents that highlights ten key areas of profitability that leadership teams need to consider and address. From measuring profitability across multiple dimensions to making high-quality pricing decisions, compare their responses to the profitability practices and priorities in your institution with this great new resource.
 

JULY 8, 2019
FMS Perspectives: ERM for the Boardroom
By Hilary Collins, Specialist, Publications and Research, Financial Managers Society

FMS Perspectives: ERM for the BoardroomHave you ever felt challenged while preparing an enterprise risk management (ERM) program presentation? Ever had one go badly?

ERM, by definition, is a process itself, so reporting of your program’s results to your board of directors is also considered a process. In our new FMS Perspectives piece, Enterprise Risk Management for the Boardroom, Randy Marsicano of WolfPAC Solutions Group dismantles four myths and offers three tips for how to effectively communicate your ERM progress to leadership.
 



Contributors


Mark Loehrke
Editor and Director, Publications and Research
Email: mloehrke@FMSinc.org 



Danielle Holland
President/CEO
Email: dholland@FMSinc.org 




Hilary Collins
Specialist, Publications and Research
Email: hcollins@FMSinc.org