Risk Management For The Community Bank

Decent Essays
For the community bank, goals are incorporated into the risk management program established by the CRO and management. To ensure the bank serves the local community, the identification and management of risks and loss exposures, in addition to, policies and procedures enable the institution to thrive. Tolerable uncertainty, legal and regulatory compliance, economy of operations, social responsibility are pre-loss goals, whereas, survival, business continuity, profitability and growth, and earnings stability are post-loss goals. The attainment of each risk management is addressed. The first goal is tolerable uncertainty. According to Elliott (2012), keeping management assured whatever happens will be within anticipated bounds and effectively addressed. The developed risk management program has analyzed the risks for the community bank and aligned safeguards with the bank’s objectives. Accounting for the risk appetite of senior management guides the CRO. Through ERM and traditional risk management, risk financing techniques and the purchase of insurance mitigate the identified risks. Legal and regulatory compliance is the second goal. This goal guarantees the legal obligations are fulfilled (Elliot, 2012). For the community bank as a whole entity, the CRO is responsible for assisting in managing this risk and the liability. For example, the CRO has implemented ERM strategies of planned and unplanned retention. The employees are aware of the actions necessary to
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