Impact of the Appraisal Function on Operational Risk
Learn how a bank's appraisal function can raise or reduce operational risk, what the interagency guidelines expect, and how to build a tailored ORM program.
Speaker
Heidi C. Lee
Commercial review appraiser · Appraisal Review and Consultation · MAI and AI-GRS (Appraisal Institute)
Overview
Regulators want financial institutions to follow their appraisal guidance, and also to recognize and avoid risks specific to their own institution. Operational risk takes in many other types of risk, and under some conditions a faulty appraisal program can inflate it.
This 60-minute webinar looks at those situations and how to avoid them. You'll learn how the Interagency Appraisal and Evaluation Guidelines stress risk assessment, how operational risk flows through the organization, including the appraisal function, and why it can be managed but not eliminated.
The session covers operational risk management (ORM) discipline and practice, the problems with traditional risk silos, the importance of transparency, the roles of people and technology, and warning signs of poor appraisal integration. You'll also get a framework to customize your bank's ORM program.
Why attend: Banks assess credit and market risk well but often underestimate the risk of incomplete compliance with the interagency guidelines. Poor links between the appraisal function and other departments add risk, and many compliance and risk reviews overlook appraisals entirely. This session suits community bank CEOs and presidents, credit administration and credit officers, chief appraisers, credit reviewers, lending managers and staff involved in appraisals.
What’s covered
- A framework and ideas for customizing your bank's ORM program
- The impact of the appraisal function on operational risk
- How an effective ORM program helps the appraisal function support loan production and reduce risk
- The role of people in operational risk management
- The impact of technology on operational risk management
- Warning signs of poor appraisal integration in operational risk management
Who should attend
What you get
About the speaker
Heidi Lee is a commercial review appraiser with 18 years of experience at Whitney National Bank, a mid-sized financial institution. Since retiring from Whitney Bank in 2011, Heidi has founded Appraisal Review and Consultation to share her skills and appraisal regulatory knowledge base with other financial institutions. Her firm offers commercial review services and appraisal policy/procedures assistance to small- and medium-sized banks across the country.
She has earned the MAI and the AI-GRS designations issued by the Appraisal Institute and the MRICS designation issued by the Royal Institution of Chartered Surveyors. She holds a general appraiser certification in Louisiana and Texas and was appointed by two governors to serve on the Louisiana Real Estate Appraisers Board. Additionally, she is a member of RMA (Risk Management Associates), with a special interest in credit risk and operational risk.
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