Pub. 1 2010 Issue 4

winter 2010 23 Q Risk Management — continued on page 24 could result in substantial harm or inconvenience to any customer; and • Ensure the proper disposal of customer information and consumer information. In summary, protect the nonpublic customer and con- sumer information in your possession. The risk assessment process addresses all of the stated objectives noted by the FDIC. Therefore, a significant result of your risk assess- ment efforts is the completion of the bank’s Information Security Program. While developing the Information Se- curity Program, we want to emphasize that the bank needs to ensure that the Board of Directors is involved directly or through an appropriate committee, that the process involves the assessment of risk and that the Information Security Program is used to manage and control risk. Based upon this, you can conclude that a comprehensive Information Security Program is an integral part of the bank’s effective risk management process. One item noted previously that directly addresses effective risk management is the goal of managing and controlling risk. How do you effectively manage and control your risk? One item that is recommended is to review the results of your risk assessment. An effectively completed risk assessment should result in certain risks that have been identified that require bank management attention. Consider what we noted in our first article on Effective Risk Management: you cannot eliminate risk. A risk assessment that does not reveal any risk is probably an ineffective risk assessment. Therefore, if your risk assessment indicates little to no risk, we strongly recom- The Correspondent Division of CenterState is a full service unit with an extensive network of bank relationships throughout the Southeastern United States. OUR SERVICES: Fed Funds Lines of Credit • Fixed Income Securities Sales • Bank Funding Bond Accounting and Safekeeping • Asset/Liability Management Reporting • International Services Bond School and Customized Educational Functions • Agent Fed Funds Program (877) 604-8282 120 Club Oaks Court, Suite 150 • Winston-Salem, NC 27104 w w w c s b c o r r e s p o n d e n t c o m Successful risk management involves the process of identifying risk, identifying controls, rating the risk, testing of controls and remediation efforts to manage the identi fi ed risks.