CAE Agenda: Your Monthly Audit News Roundup - July 2020


JULY 2020

Our team has collected the top internal audit news, insights and resources for financial services organizations to help you and your teams.

Thank you for reading the July edition of the CAE Agenda.



A Guide to Business Continuity Management Top 15 Questions

No one can predict when the next disaster or business disruption will strike; the only certainty is that something unplanned and disruptive will happen. Companies can prepare for this inevitability by making business continuity management a central part of their risk management efforts.

In our updated Guide to Business Continuity Management Top 15 Frequently Asked Questions, we examine critical and pressing concepts about business continuity management and related practices. The guide provides insights to help you prepare and plan to build resilience for the unknown.

The top 15 questions are available now. Read them online or download a copy. Look for our complete, updated guide to business continuity management FAQ (fourth edition) in September 2020.

Guide to Business Continuity Management: Top 15 Frequently Asked Questions


OCC Highlights Key Risks for Federal Banking System

June 29, 2020

On June 29, the Office of the Comptroller of the Currency (OCC) reported the key issues facing the federal banking system and the effects of the COVID-19 pandemic on the federal banking industry in its Semiannual Risk Perspective for spring 2020. The report presents information in four main areas: the operating environment, bank performance, special topics in emerging risk and trends in key risks. It focuses on issues that pose threats to those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners and the public.


Download Report



Federal Reserve Board Releases Results of Stress Tests for 2020 and Additional Sensitivity Analyses Conducted in Light of the Coronavirus Event

June 25, 2020

On June 25, the Federal Reserve Board released the results of its stress tests for 2020. In addition to its normal stress test, the Fed conducted a sensitivity analysis to assess the resiliency of large banks under three hypothetical recessions, or downside scenarios, that could result from the coronavirus event. The scenarios included a V-shaped recession and recovery; a slower, U-shaped recession and recovery; and a W-shaped, double-dip recession.​


Download Results



Financial Regulators Modify Volcker Rule

June 25, 2020

On June 25, five federal regulatory agencies finalized a rule modifying the Volcker rule's prohibition on banking entities investing in or sponsoring hedge funds or private equity funds—known as covered funds. Like the proposal, the final rule modifies three areas of the rule by streamlining the covered funds portion of rule, addressing the extraterritorial treatment of certain foreign funds and permitting banking entities to offer financial services and engage in other activities that do not raise concerns that the Volcker rule was intended to address. The rule will be effective on October 1.


Download Final Rule



FFIEC Announces Availability of 2019 Data on Mortgage Lending

June 24, 2020

On June 24, the Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on 2019 mortgage lending transactions at 5,508 U.S. financial institutions covered by the Home Mortgage Disclosure Act (HMDA). Covered institutions include banks, savings associations, credit unions and mortgage companies.


Read Press Release



CECL and the AICPA Practice Aid (Part 4): Modeling Considerations and COVID-19

June 22, 2020
As we continue our series of blog posts examining the AICPA Practice Aid on preparing for the new current expected credit losses (CECL) standard, this post on modeling considerations is especially timely given the economic upheaval of the ongoing COVID-19 pandemic and the dramatic effect that it is having on loss models. Many of the assumptions built into January models were no longer valid by March 2020. That has forced many institutions to adjust their models to this new reality.

LIBOR Transition During the Pandemic: Is Your Program Management Office Ready to Take on the Challenge?

June 18, 2020
As organizations have contemplated the impact on critical functions that are now supported by a distributed workforce, many did not consider the role of the Program Management Office (PMO) in the LIBOR-to-RFR transition until late in the process. However, the significant legal, tax, liquidity, accounting and infrastructure considerations involved in the migration to RFR require a PMO from the start, to serve as both a leader and a change champion to help avoid transitory pitfalls in executing the strategic vision during this time of uncertainty.

Podcast: Searching for the ‘New Normal’ – A Business Continuity Planning Update

June 17, 2020 
In the face of a global pandemic, the financial industry has relied upon its robust business continuity planning efforts. Ken Bentsen, president and CEO of SIFMA, sat down with Ron Lefferts, global leader of technology consulting at Protiviti, and Tom Price, managing director and head of SIFMA’s technology, operations and business continuity team, to explore the story behind the industry’s business continuity planning efforts in the face of a global pandemic.

Cloud Oversight in Financial Services: Understanding Responsibility and Control

June 25, 2020 
Regulators are becoming more prescriptive in their oversight of cloud operations, revealing a gap between regulatory expectations and a frequent lack of clarity among cloud service providers (CSPs) and institutions about whose responsibility it is to meet them. With many companies adding even more cloud functionality to accommodate the remote working requirements necessitated during the pandemic, now would be a good time to review the FFIEC guidelines and determine what additional controls and audit tools and procedures may be required.

CPE Webinar: Adjusting for the New Normal: Workplace Return Considerations

July 9, 2020
As organizations contemplate the prospect of reentering their offices for the first time in a long time, there are a number of logistical and practical matters to consider, and some theoretical ones as well. During this webinar on July 9 (at 12pm ET), we'll address practical considerations, including reimagining how many people will come to work, where they will sit and with whom they will interact. We will also explore the importance of leadership to identify and look for ways to operationalize any process improvements that may have occurred as an unintended outcome of pandemic response.

Next Phase: Opening the Workplace – Key Questions for the CIO During the Transition

June 12, 2020 
Leaders have spent the last several months stabilizing their organizations as they work through the challenging circumstances brought about by the global COVID-19 pandemic. Now that most senior executives have a better understanding of the environment, they are identifying opportunities to optimize the balancing of bringing employees back into the office in a safe but balanced approach. These executives know there is no “one-size fits all” approach. Read this blog to learn more about common questions the overall organization needs to consider.

Operational resilience

Beyond Business Continuity Management: Building Resilience for Extreme but Plausible Events in a Post-COVID-19 World 

As the pandemic stretches on, Business Continuity Management (BCM) teams are expected to continue to apply lessons learned and evolve their methods so they can respond effectively if and when another COVID-19-like event occurs. In this blog, we discuss a few things that can help organizations build resilience in this changing risk environment: Understanding BCM basics and the importance of regulations and standards; addressing concentration risk; and tapping into the unique benefits of cloud computing. 


Read Blog

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