Challenge. Community Bank Co. was a six year-old, 4-branch, $220M asset community bank that was growing very rapidly. Its leadership wanted a functional and scalable internal audit program that would help the bank realize its business goals and also address growing pressure from bank regulators to develop a more comprehensive and formalized internal audit program.
Approach. After consulting with external consultants, other bank auditors, and interviewing key stakeholders, I designed and performed an enterprise risk assessment reviewing the internal controls and risk levels of all the bank’s functional areas and assets. Working closely with the chief operations officer and chairman of the audit committee, I then designed the program framework, developed the internal audit and audit committee charters, and first-year audit schedule, reporting regularly to the audit committee on the project’s status. I also sourced and implemented a whistleblower solution and trained bank employees on its purpose and use.
Results. Community Bank Co. successfully implemented its first full-scale, enterprise-wide internal audit program that was approved by its board of directors and accepted by federal and state bank regulators.
Feedback. “Steve researched the regulatory requirements for, and designed, a start-up internal audit program (including risk assessment) that was accepted by federal banking regulators. He had a good working relationship with federal and state auditors, who spoke well of his work product.” – P.S. Faust, EVP and Chief Operating Officer