2015 Annual Performance Plan
EFFECTIVE MANAGEMENT OF STRATEGIC RESOURCES
The FDIC recognizes that it must effectively manage many critical strategic resources to successfully carry out the annual performance goals outlined in this plan. These resources must be aligned and deployed to the areas where they are most needed. An overview of planned 2015 initiatives to enhance the FDIC’s management of its key strategic resources is provided below.
Financial Resources Management
The FDIC does not use taxpayer funds. Its operational expenses are predominantly paid from the Deposit Insurance Fund (DIF), which is funded from assessments paid by insured financial institutions. The FDIC takes very seriously its fiduciary responsibilities to use these funds efficiently and cost-effectively to meet its mission responsibilities. To that end, the FDIC engages annually in a rigorous planning and budget formulation process to make sure that budgeted resources are properly aligned with workload projections and designated corporate priorities (see Appendix B).
The FDIC’s disciplined approach to managing its financial resources has been apparent over the past several years. From 2008 through 2010, the FDIC’s annual operating budget almost quadrupled and its authorized staffing level almost doubled in response to a rapid increase in the number of problem institutions and insured institution failures. The FDIC relied primarily on nonpermanent staff and contractor resources to address the resulting uptick in its supervisory and resolutions workload in order to facilitate future budget and staffing reductions when workload returned to more normal levels. In subsequent years, both the annual operating budget and authorized staffing level declined substantially. For 2015, the FDIC’s annual operating budget and authorized staffing are approximately 42 percent and 26 percent, respectively, below the peak levels experienced in 2010 and 2011. The FDIC will continue to carefully monitor both its supervision and receivership management workload and will take steps to further reduce expenses for these programs as underlying workload declines.
Human Capital Management
The FDIC’s most important resource is the “intellectual capital” that its employees bring to bear on the accomplishment of its mission. For that reason, the FDIC strives to attract, develop, and retain a highly skilled, diverse, and results-oriented workforce and to be regarded as a preeminent place to work among federal agencies, especially those whose workforces consist primarily of financial professionals. More than one-quarter of the FDIC’s current permanent workforce is projected to retire over the next ten years. This will provide the FDIC a unique opportunity to reshape its permanent workforce to provide effective regulatory oversight to meet the emerging challenges of an increasingly complex U.S. financial system in the 21st century. In 2015, the FDIC will continue to pursue several ongoing initiatives to shape its future permanent workforce while addressing immediate staffing needs.
Workforce Development Initiative
Like many other federal agencies, the FDIC faces potential succession management challenges as many of its long-term, experienced employees retire. Introduced in 2013, the FDIC’s Workforce Development initiative emphasizes the need to prepare employees to fulfill current and future capability and leadership needs. This focus ensures that the FDIC has a workforce positioned to meet today’s core responsibilities while preparing to fulfill its mission in the years ahead.
During 2014, the FDIC continued to develop and began implementation of the Workforce Development initiative. Based on an initial assessment of the current talent pipeline for senior leadership positions, the FDIC elected to broaden the scope of the initiative beyond succession planning to address comprehensive workforce development challenges and opportunities. The initiative is focused on four broad objectives: attracting and developing talented employees across the agency, enhancing the capabilities of employees through training and diverse work experiences, encouraging employees to engage in active career development planning and seek leadership roles in the FDIC, and building on and strengthening the FDIC’s operations to support these efforts.
In 2015, the FDIC will continue to develop and implement the infrastructure, governance, programs and processes to support the attainment of these objectives in meeting its long-term workforce needs. The FDIC is committed to building and maintaining its talent pipeline to ensure succession needs are fully addressed. It will take several cycles of identifying future workforce and leadership requirements; assessing current workforce capabilities, supporting employees who aspire to leadership and management roles, and developing and sourcing the talent to meet emerging workforce needs.
One key component of the workforce planning strategy continues to be the Corporate Employee Program (CEP). The CEP is the primary vehicle used to fill new, entry-level positions in the FDIC’s core bank supervision and resolutions and receivership management functions. The CEP emphasizes the development of a more flexible workforce that is cross-trained in the FDIC’s core mission functions. The objective is to build and maintain a workforce that can be redeployed rapidly to address new workload priorities in response to unexpected external events or changing conditions in the banking industry and the broader economy.
In 2015, the FDIC will also continue to focus on ensuring that it has in its current workforce the skills needed to fulfill its core mission responsibilities, especially those related to the oversight of systemically important financial institutions required under the DFA. As an outgrowth of its strategic workforce planning, the FDIC established in 2014 a new employee development program to expand the number of FDIC employees who have broad, cross-divisional experience with the largest and most complex FDIC-insured banks and bank holding companies. The program provides experience in supervision, risk analysis and monitoring, deposit insurance pricing and fund management, and resolution planning.
FDIC employees have a long tradition of responding effectively in times of crisis. Through further development of its human capital strategies, the FDIC will work to ensure that the future FDIC workforce is as prepared, capable and dedicated as the one it has today.
Workforce Diversity and Inclusion
In 2015, the FDIC will continue to pursue a more comprehensive, integrated, and strategic focus on diversity and inclusion within the FDIC workforce. The FDIC Diversity and Inclusion Executive Advisory Council, composed of key senior executives, oversees the implementation of the FDIC Diversity and Inclusion Strategic Plan, which was initially issued in early 2013 and is updated annually. The plan lays out a course for achieving workforce diversity through targeted recruiting and employee development initiatives; and cultivating greater workplace inclusion through collaboration, flexibility, and fairness. The plan details specific steps to enhance diversity and inclusion at the FDIC in the areas of leadership engagement, analytics and reporting, training, communications, strategic planning, and program enhancement.
A Culture of Workplace Excellence
Over the past several years, the FDIC has participated in annual employee surveys conducted by the U.S. Office of Personnel Management. These surveys identified major areas of strength as well as opportunities for improvement in employee satisfaction and engagement within the FDIC workforce.
Survey results have consistently demonstrated that FDIC employees have an excellent understanding of the FDIC’s mission and strategic direction and know how their work fits into the organization’s goals and priorities. They enjoy their work, believe it is important, and get a sense of personal accomplishment from it. Employees are also highly satisfied with their pay and benefits, as well as the FDIC’s family-friendly work-life balance programs, physical work environment, and training, technology, and other resources.
The FDIC’s Workplace Excellence (WE) Program plays an important role in helping the FDIC maintain a culture of workplace excellence. The WE Program is composed of a National WE Steering Committee and individual Division/Office WE Councils focused on maintaining, enhancing, and institutionalizing positive workplace and cultural change at the national and division/office levels at the FDIC. The WE Program enhances communications, provides additional opportunities for employee input and engagement, and promotes employee empowerment.
Employee Learning and Development
The FDIC provides employees with skills-based training and leadership development opportunities to help achieve its mission. In 2015, the FDIC’s Corporate University will continue to offer innovative solutions to prepare both current and new employees for the challenges ahead. It will also continue to use its learning programs as opportunities to strengthen its organizational culture, build key competencies, and reinforce corporate values.
The FDIC provides its workforce with the technical knowledge and skills necessary to examine and supervise financial institutions and manage receiverships. In 2015, the FDIC will continue to develop and implement the priority components of the approved Division of Depositor and Consumer Protection (DCP) learning and development framework. Based on a comprehensive needs assessment completed in 2012, the framework is designed as a multi-year initiative to enhance the dissemination of critical information, expand training programs at all levels, and facilitate the cross-organizational sharing of knowledge and expertise The FDIC will also continue a three-year effort to develop a comprehensive curriculum to provide foundational knowledge, specialized skills, and cross-training opportunities across functions for employees in the Division of Resolutions and Receiverships to promote a flexible workforce and ensure readiness for future resolutions and receiverships activity.
In support of the FDIC’s responsibilities for the possible orderly liquidation of a systemically important financial company, facilitated discussions and tabletop exercises, will continue to be used to enhance strategic and operational readiness, build interagency relationships, and implement and test new policies and procedures.
In addition to technical training, the FDIC is focused on developing employees as leaders at all levels of the organization. The FDIC has a comprehensive leadership development curriculum that consists of core courses, electives, and enrichment activities. Development of the core leadership curriculum was completed in 2011, and new electives and enrichment opportunities will be added in 2015 to promote leadership throughout the organization.
Management of Information Technology Resources
The use of information technology (IT) is essential to accomplishing the FDIC’s mission. Innovative, timely, reliable, and secure information helps the FDIC meet its annual performance goals and carry out daily operations. Protection of digital information is vital as technology becomes an increasingly integral component of business functions. In 2015, the FDIC will focus on managing its IT resources to improve information security, support its responsibilities under the DFA, and improve performance and efficiency across all program areas.
The FDIC has a robust, risk-based, organization-wide information security program. Digital information and information systems are treated as corporate assets to be protected, with controls at a level commensurate with the sensitivity of information processed, stored, or transmitted. Since government agencies face increasing and ever-changing cyber-threats, the FDIC must continue to enhance its continuous threat monitoring capabilities. The FDIC maintains a risk management approach to cybersecurity that provides an accurate picture of the FDIC’s security risk posture at all times. The approach provides visibility into assets, leverages automated data feeds to quantify risk, ensures security control effectiveness, and supports prioritized remedy implementation. In 2015, the FDIC will continue implementing enhanced strategies for ensuring the security of the FDIC’s systems and IT infrastructure against external intrusion.
Security and privacy are embedded into the FDIC’s culture. Each employee and contractor must review and complete annual information security and privacy awareness training to acknowledge their responsibilities under the information security and privacy programs. The privacy program is primarily focused on ensuring that appropriate steps are taken to protect personally identifiable information from unauthorized use, access, disclosure, or sharing and to protect associated information systems and websites from unauthorized access, modification, disruption, or destruction.
Continuity of Operations
In 2014, the FDIC placed into operation a Sensitive Compartmented Information Facility (SCIF) to meet Continuity of Operations requirements for a Level 2 agency. This project included hiring a full-time Special Security Officer and constructing the SCIF to standards of Intelligence Community Directive 705, Sensitive Compartmented Information Facilities. The SCIF received physical security accreditation in August 2014, and equipment was purchased to enable communications testing and assessments planned for 2015.
In 2015, the FDIC will also continue to work on completing Business Impact Analysis/Business Process Analysis for all divisions and offices. Findings will be used to further refine the Corporate Continuity of Operations Plan, as well as Business Continuity Plans for all FDIC Regional Offices. These plans will help minimize disruptions to FDIC operations, thus enabling continuous performance of essential FDIC functions. In addition, the FDIC will continue to work toward meeting standards set forth in NCSD 3-10 for continuity communications and will participate in training and exercises directed by the White House and FEMA through the annual continuity exercise, Eagle Horizon 2015.
As an integral part of its stewardship of the DIF, the FDIC maintains a comprehensive risk management and internal controls program that is designed to improve the efficiency, effectiveness, control, and risk-focus of internal operations. Staff in the FDIC’s internal controls program advise and assist with issues such as risk management, internal controls, system security, privacy, operational effectiveness and efficiency, post-project reviews, and audit follow-up. As the FDIC transitions back to post-crisis operational status, the focus will return to ensuring that key financial operations and processes maintain sound internal controls. The goal will be to ensure that these operations are managed appropriately and that opportunities to improve the control environment are identified and implemented in an efficient and timely manner.
During 2015, the focus will be on continuous improvements to the FDIC’s core business functions, with a continuing emphasis on activities associated with DFA Title II implementation, system security management, system development risk management, enhanced performance metrics, and the operational risks accompanying client-led development.
In 2015, the FDIC will also continue to review a sample of transactions and invoices to confirm management attestations that financial reporting and internal control procedures have been correctly followed. Process maps are being developed for critical operations, and billing reviews will be performed on high-dollar contracts as part of monitoring exposure to improper payments. All of these efforts support processes to make sure that the foundation of controls remains strong throughout the Corporation.