Financial modeling represents an increasingly important management tool for the banking industry; however, the models themselves introduce a new source of risk the potential to inform management decisions incorrectly. Strong governance procedures can help minimize model risk. This article suggests areas of examiner review when evaluating the adequacy of a bank's oversight, control, and validation of models.
Online Delivery of Banking Services: Making Consumers Feel Secure
Strengthening security for Internet-based financial transactions has become a priority for banks, regulators, and consumers. This article reviews key findings of an FDIC study that evaluates a variety of identity authentication technologies. The article also focuses on interagency guidance requiring insured financial institutions and service providers to address the protection of sensitive customer data and assets as part of the development of Internet banking products and services.
Enforcement Actions Against Individuals: Case Studies
Second in a series about the enforcement action process as it applies to individuals, this article discusses two cases of insider misconduct one of embezzlement and the other of loan fraud. The article highlights internal control weaknesses that facilitated the misconduct and presents an overview of the elements of an effective internal audit program.
Supervisory Insights is published by the Division of Supervision and Consumer Protection of the Federal Deposit Insurance Corporation to promote sound principles and best practices for bank supervision.
Donald E. Powell
Christopher J. Spoth
Acting Director, Division of Supervision
and Consumer Protection
Steven D. Fritts
Journal Executive Board
Donna J. Gambrell, Deputy Director
John M. Lane, Deputy Director
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Doreen R. Eberley, Acting Regional Director
Stan R. Ivie, Regional Director
James D. LaPierre, Regional Director
Scott M. Polakoff, Regional Director
Mark S. Schmidt, Regional Director
Kim E. Lowry Managing Editor
Brett A. McCallister Financial Writer
April G. Schwab Financial Writer
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