Pub. 14 2019-2020 Issue 6

WWW.NEBANKERS.ORG 26 W HEN IS THE LAST TIME you r boa r d r e - viewed the contents of the board pack- age? If you have not reviewed the information that your board reviews on a monthly basis in over 12 months, you may not be providing the information you should. The reports in the board package have traditionally been somewhat non-specific, often based on guidelines provided by the Office of the Comptroller of the Currency or Federal Deposit Insurance Corporation. Our community bank boards have traditionally been focused on the analysis of the bank’s finan- cial performance. This approach was based on the philosophy of “more is better,” so the bank made sure it provided every- thing the board needed to carry out its responsibilities. A shift in the banking in- dustry as well as the overall economy has complicated board reporting for banks of all sizes. Each required policy has its own reporting requirements, which may not necessarily be directly linked to board reporting, it does influence it and requires reporting standards. This is pri- marily because such documen- tation may be expected to serve as a partial record of the bank’s processes and procedures for the benefit of regulators. While financial performance analysis continues to play a significant part in reporting to the board, the inclusion of operational risk management Board of Directors Information Package Review, What Should be Included? Darlia Forgarty, President, Compliance Alliance