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The RMA Journal
December 2009 - January 2010
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The year 2009 will soon come to a close, and many of us in the financial services industry are having the same thought: Thank goodness! We’ve witnessed continued deterioration in our loan portfolios, downward asset revaluations, shrinking (or no) profitability, and an ever-increasing regulatory burden. The recessionary environment has been devastating to our customers and, since our banks simply reflect the economy, the performance of the financial services industry has suffered as well. As we look to 2010, we should consider the thoughtful advice of Yogi Berra, "The future ain’t what it used to be." And thank goodness again. I would suggest we can change the future. You may recall Marty McFly and Doc Brown flipping back and forth between the past and the future in the Back to the Future movies. Now, unless you have a retrofitted DeLorean, the best way to alter the future is to learn from the past and adjust the course ahead.This issue of The RMA Journal offers excellent articles to help us bridge from the past to the future. We can learn what has worked and is time-seasoned. In his RMA Journal interview, Frost Bank CEO Dick Evans explains how his institution’s strong culture has allowed it to perform comparatively well throughout this downturn. Unfaltering adherence to a clearly defined mission by everyone at Frost has kept the company strong and profitable for 141 years.Several articles focus on lessons learned and offer excellent advice on policies and practices we can change to improve long-term results. James Lam’s discussion of "Post-Crisis Credit Risk Management" provides insight into best practices from Canadian banks. If your bank extends credit to restaurants, you will find Kyle Nye’s article most informative. If your institution has experienced a fraud loss (if you haven’t, you will), several articles give helpful suggestions on reducing exposure to operational risks. Where Do We Go from Here? Looking forward, the consensus forecast is for a more favorable economy. Preparing for opportunities may not be at the top of your to-do list today, but looking ahead might be a good idea. In his article "Where Do We Go from Here?" Rick Buczynski suggests it’s time to explore the next avenues for growth. The beginning of a new year is a time for resolutions. We all make them. If you have any doubt, check out the traffic in the local gym during the first week in January. I’m not going to recommend more exercise, however, just a resolution for more learning. As you are preparing your calendar for the coming year, commit to three professional development activities that will help you improve your risk management knowledge and skills. That’s only one per quarter, assuming you take the summer off.RMA offers a broad array of learning opportunities. You may want to sign up for a Web seminar, attend an open enrollment class sponsored by your local chapter, or participate in a round table. If you have been considering the Credit Risk Certification path, RMA University Online will offer you an excellent way to get started. This new interactive format for courses will be unveiled during the first quarter. Yogi wisely advised us, "Life is a learning experience, only if you learn." As we leave 2009 behind, our challenge is to continue improving our understanding of risk management. That’s where we go from here. Best wishes for a prosperous 2010! vW. Kendall Chalk, Interim President and CEO kchalk@rmahq.org |
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