In conjunction with the Western Banking Association (WBA), we’re offering a series of webinars, entitled, “Crucial Resources for the Effective CRO.” The three webinars will go beyond regulations and bureaucracy to explain what you need to know about stress testing, modeling, and data governance.

The WBA was formed in 2018 through a merger of the California Bankers Association (CBA) and Western Independent Bankers (WIB). If yours is one of the nearly 200 member banks, please join us for the following sessions–all start at 9:00 AM PDT (or 12:00 PM EDT).

1. Beyond Regulatory Stress Tests – April 19

An executive’s guide to the practical benefits of stress testing and scenario analysis. Everyone makes many personal, risk-related decisions using scenario analysis—from where to live to when to cross the street to what to eat for dinner. Yet, most banks infrequently use stress testing for non-regulatory purposes. We think that should change.

We’ll show the benefits of stress testing: as a risk management tool, a nexus of information and a communication mode—as part of a board-level, risk appetite framework. We’ll also describe what the inability to stress test says about a firm’s risk management. Presented by Andy Spero.

2. Good Models (and Bad Models, too) – April 26

An executive’s guide to modeling and its risks. SR-11-7 (OCC-11-12) presents a mechanical definition of “model” that’s incomplete and potentially misleading. We’ll explain why and present two other definitions that are simpler, clearer and, frequently, more relevant.

We emphasize that sound concepts are most important but are difficult to measure, and show that–unfortunately–the road to Hell is paved with good intentions that are easy to measure. (In fact, it’s because they’re easy to measure.)

Bad models result from (1) wrong or misleading calculations, (2) poor understanding of the phenomena of interest or (3) both; so, they’re wasteful and potentially harmful. We illustrate common mistakes by bankers, “quants,” and regulators, and describe areas where the guidance is useful and where it’s not.  We’ll tell you how to avoid those missteps or mitigate the damages of unavoidable ones. Presented by Andy Spero.

3. Decisions, Information and Data Governance – May 1

An executive’s guide to data for decision-making. Analysts and modelers often complain about data problems, but analyzing your own firm’s risk, customer, and (relevant) external data is the only way to estimate the effects of your decisions or the environment. Analyses and models are useless otherwise.

The question is: are you storing the right data or are you still focused only on financial and customer records? Given the recent, massive investments in IT, storage of additional data is cheap; so, what’s holding you back?

We discuss the true, value-added role of data governance: providing valid data for decision-making, modeling and analysis. Highlights include:

• Like the poor, data problems will always be with us. So, don’t let the perfect be the enemy of the good.
• If you don’t have facts about your firm, its customers and environment, who does? (And what could it cost you?)
• Data governance sounds bureaucratic, but it’s simply good data management, and with flexible, modern systems, it need not be as expensive as it seems.
• It’s 2018, if not now, when? And, if not now, what will you continue to miss?

Presented by Phil Chamberlain.