Institutional governance must be a source of strength to a financial institution. Current regulatory policies and initiatives have made the effective involvement and functioning of Boards of Directors and management an even more critical aspect of an institution’s effective operation.
As a financial institution is itself a living organism that, despite ongoing care and good faith attention, nonetheless benefits enormously from periodic check-ups that identify governance gaps, inefficiencies or failures. These deficiencies inevitably result from changes in operating circumstances or changes in organizational profile that often subtly and imperceptibly interfere with the effective governance process. While these deficiencies need not result from major crises, they need to be identified and corrected before a faulty governance process is tested in crisis.
Smith Regulatory Strategies (SRS) offers its clients an independent review of their governance structures and processes. In conducting an overall assessment of an organization’s governance and the effectiveness of its communications and internal controls, the experience and objectivity of the SRS Senior Advisors as former senior bankers, regulators and consultants will assure an informed, efficient and thorough evaluation with a practical and actionable end product.
The SRS focus will encompass an organization’s governance policy, its charters for boards of directors and board committees, the Board/Management relationship, the ongoing process and operations of its governance structure, it’s outward and inbound communications with regulators and the role institutional governance plays in addressing institutional challenges and strategic objectives. A significant part of any Governance Review is the role Compliance plays in the governance picture and SRS includes that element in its review.
SRS is available to assist its clients develop or review Board structure and membership including qualifications of board members and to assess how the roles played by board members and key management personnel play contribute to the organization’s central focus and objectives.
Regulatory- mandated Management Reviews are among the services SRS offers its clients. The background and experience of its Advisors as regulators and bank executives adds greatly to SRS’ dual sensitivity to institutional uniqueness and regulatory policy interests. With a weather eye for necessary confidentiality and reporting obligations, SRS will meet this mandate in an efficient and informative manner.