Bank Director Program

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Course Titles and Descriptions

Bank Secrecy Act – Sr. Management & Directors

The Bank Secrecy Act (BSA) is one of the main tools the Federal Government uses to combat financial crimes and terrorist activity. The BSA requires banks to assist in preventing crime by enacting sound policies regarding reporting, recordkeeping, and monitoring of potentially criminal activity.

BSA/AML requirements grant senior management and the board of directors’ primary responsibility for ensuring that the bank has a comprehensive and effective BSA/AML compliance program and oversight framework that is reasonably designed to ensure compliance. This course is intended for senior management and board of directors. Rev. 01/24. Course length ≈ 34 minutes.

Learning Objectives

  • Implement a BSA/AML program at your bank based on the five pillars
  • Know the basic technical requirements of the Bank Secrecy Act
  • Understand the challenges banks may face if senior management and the board are not involved in creating a successful BSA/AML program
  • Keep abreast of emerging trends in the BSA/AML world

Course Outline

  • BSA/AML Program Requirements (5 Pillars)
  • BSA Requirements Overview
  • Common Findings/Challenges/Violations
  • Hot Topics

Board Committees

Board committees are a very important part of effective corporate governance. Board committees allow for a division of labor and enable directors with the requisite expertise to handle matters that require detailed review or in-depth consideration.

This course provides information on the importance of board committees, the requirements of a committee charter, and the different types of committees that exist within a bank’s structure. Rev. 12/19. Course length ≈ 13 minutes.

Learning Objectives

  • Understand the importance of having board committees.
  • Create a board committee charter
  • Know the different types of board committees that a bank may have

Course Outline

  • Importance of Committees
  • Written Committee Charter Elements
  • Types of Committees

Board Governance

The idea of corporate governance simply means having an internal governance structure that meets the needs of your organization in whatever form that is. One can really view corporate governance as nothing other than doing the right things and providing a roadmap for what bank directors should do.

This course discusses an overview of ways to create a sound and comprehensive board of directors, the legal duties required of directors, the risks bank directors face, and succession planning considerations. Rev. 12/19. Course length ≈ 18 minutes.

Learning Objectives

  • Create a board structure for the organization
  • Comply with the legal duties of board members
  • Understand the risks of being a director
  • Consider various way to plan for board member succession

Course Outline

  • Board Structure (members, size, executive session, internal governance)
  • Legal Duties
  • Succession Planning
  • Other Miscellaneous

CAMELS

The Uniform Financial Institution Rating System (UFIRS), more commonly known as CAMELS rating, is an internal rating system used by the banking regulators for assessing the soundness of financial institutions on a uniform basis.

The system also helps identify institutions requiring closer supervisory attention. This course describes each of the six components of the CAMELS rating and the principal evaluation factors that relate to each component. Rev. 12/18. Course length ≈ 18 minutes.

Learning Objectives

  • Know what comprises the component and composite ratings
  • Define what each of the components for the CAMELS ratings are
  • Understand the assessment factors for each component

Course Outline

  • Ratings
  • Capital Adequacy
  • Asset Quality
  • Management
  • Earnings
  • Liquidity
  • Sensitivity to Market Risks
  • Exam Report

Compliance Laws & Regulations

Laws and regulations govern many aspects of banking. It is important bank directors have a general understanding of each of the regulations in order to establish policies and monitor its operations according to the law.

This course gives you a brief overview of many of the banking laws and regulations. Rev. 01/24. Course length ≈ 47 minutes.

Learning Objectives

  • Have a general understanding of the of the various federal regulations
  • Ensure your bank is complying with the laws and regulations through policy creation and monitoring

Course Outline

  • Deposit Regulations A-Z
  • Lending Regulations A-Z
  • Other Laws

Compliance Program Management for Directors

Laws and regulations govern many aspects of banking. It is important bank directors have a general understanding of each of the regulations to establish policies and monitor its operations according to the law.

This course will give you a brief overview of many of the banking laws and regulations. Rev. 12/20.

Course length ≈ 37 minutes.

Learning Objectives:

  • Have a general understanding of the of the various federal regulations
  • Ensure your bank is complying with the laws and regulations through policy creation and monitoring

Course Outline:

  • Deposit Regulations A-Z
  • Lending Regulations A-Z
  • Other Laws

Cyber & Information Security Overview for Sr. Management & Directors

Building and operating an information security program at your organization can be challenging.

This course provides your board of directors, senior management, and information security committee with the information to understand oversight responsibilities and make informed decisions to protect the bank and its customers. Rev. 01/24. Course length ≈ 30 minutes.

Learning Objectives

  • Understand the board of directors’, senior management’s, and information security committee’s roles and responsibilities for cybersecurity implementation and monitoring
  • Use of the FFIEC’s Cybersecurity Assessment Tool (CAT)
  • Basics of risk-based decision-making

Course Outline

  • Roles and Responsibilities
  • The Information Security Program
  • FFIEC Cybersecurity Awareness Program & Tool

Ethics for Bank Directors

Business ethics is a serious subject for executives, managers, and front-line employees. All bank employees are expected to make good decisions every day based on the organization's values and contemporary standards in business ethics.

Given the increased scrutiny boards are subject to, this is especially true for bank directors. This module will help bank directors understand the importance of recognizing an ethical dilemma and then acting accordingly. It will also assist directors in making sound decisions based on the principles of business ethics. Rev 12/20.

Course length ≈ 22 minutes.

Learning Objectives:

  • Explain the importance of business ethics
  • Identify the core values of banking
  • Outline a process for ethical decision making
  • Discuss some ethical problems banks can be confronted with

Course Outline:

  • The Importance of Ethics
  • Ethics and bankers
  • Ethical decision making
  • Common Ethical Problems in Banking

Executive Compensation Practices for Bank Directors

Being a bank director carries a lot of responsibility. Bank directors select management, oversee business performance, ensure compliance with the latest regulations, and make sure the bank is meeting the needs of the community.

Because of this, bank directors need to be compensated. In this course we will look at how and why bank directors are compensated, and how bank directors can help their bank set compensation practices based on the principles of safety and soundness. Rev 12/16. Course length ≈ 22 minutes.

Learning Objectives

  • Explain why bank directors are compensated
  • Discuss the various modes of compensation for bank directors
  • Identify the parties that determine compensation levels
  • Discuss contemporary issues in bank director compensation

Course Outline

  • Why are Bank Directors Compensated?
  • How are Bank Directors Compensated?
  • Who Determines Compensation Levels?
  • Contemporary Issues in Bank Director Compensation
  • Incentive Based Compensation

Fair Lending for Bank Directors

Understanding fair lending is important to managing credit and compliance risk as well as reputation risk. Every director must be familiar with the fair lending regulations and the implications of noncompliance.

In this course we provide a brief overview of the fair lending laws and the types of lending discrimination. We will also discuss actions a bank should take to avoid fair lending laws and provide information on the current state of fair lending in the banking industry. Rev. 01/24.

Course length ≈ 20 minutes.

Learning Objectives:

  • Understand the laws that require fair lending
  • Know the types of lending discrimination
  • Help develop and monitor a bank’s fair lending program to mitigate risk
  • Identify the highest areas of risk

Course Outline:

  • Fair Lending Laws
  • Types of Lending Discrimination
  • Risk & Monitoring
  • Current State of Fair Lending

Foundations of Risk Management

The basic concept of enterprise risk management has been applied, more or less, in several industries for well over a decade. The changing regulatory environment, economic turmoil, and growing complexity of products, tools, and risks has, among other influences, helped to launch the practice of enterprise risk management into the financial services area.

In this respect ERM—in the world of banks and financial institutions—is very much in its early development, though much progress has been made. This course provides an overview of the components of a successful enterprise risk management program. Rev. 12/20.

Course length ≈ 30 minutes.

Learning Objectives:

  • Understand the components of the ERM Framework
  • Define the types of risks that exist within the bank to create an ERM Program
  • Acknowledge the benefits and challenges that come with creating a successful ERM Program

Course Outline:

  • Introduction to ERM
  • ERM Framework
  • Risks
  • Benefits and Challenges of ERM
  • Conclusion

Harassment & Discrimination in the Workplace 

This new training module contains two courses:  

Business Essentials: Harassment in the Workplace – Learn about harassment in the workplace with real-life scenarios. Improve your understanding of the definition of harassment, protected characteristics, and sexual harassment.  

Business Essentials: Discrimination in the Workplace – Learn about discrimination in the workplace with real-life scenarios. Improve your understanding of the definition of discrimination and what constitutes unlawful discrimination and retaliation. The courses include video and audio. Course length ≈ 12 minutes total.

The American public and other nations around the world have strong concerns about the privacy of their personal information. This primer addresses the fundamentals regarding the use of personal information that is obtained from customers and consumers in the course of running a business, more specifically within a financial institution.

The information in this course is based on the key privacy concepts, terms, rules and requirements of the Gramm-Leach-Bliley (GLB) Act, which was passed in 1999 by Congress and signed into law by President Bill Clinton. Additional resources are provided for those who wish to explore the content in more depth. A glossary provides definitions of privacy words and phrases.

Rev 6/19. Course length ≈ 35 minutes. 

Red Flags Identity Theft Prevention Programs

Every financial institution must develop and implement a written identity theft prevention program that is designed to detect, prevent, and mitigate identity theft in connection with the opening of an account.

This course discusses the information you need to implement and maintain a compliance program at your bank. This course is intended for all personnel of the bank including, frontline, lenders, operations, and compliance. Rev. 6/19. Course length ≈ 30 minutes.

Learning Objectives

  • Explain the necessary components of a Red Flags Identity Theft Prevention Program
  • Establish a Red Flags Identity Theft Prevention Program at your bank
  • Understand the change of address policies your bank is required to have as a part of its Red Flags Identity Theft Prevention Program
  • How to implement proper Red Flags Identity Theft Prevention Program training policies for staff at your bank

Course Outline

  • Overview
  • Establishing the Program
  • Change of Address Requirements
  • Recordkeeping and Enforcement
  • Fraud Alerts
  • Examples
  • Notice of possible identity theft

Regulation E: Electronic Funds for Bank Directors

The Electronic Funds Transfer Act aims to protect the rights of consumers when they engage in electronic funds transfer (EFT) transactions. Regulation E establishes rights, liabilities and responsibilities of consumers who use electronic fund transfer services and of financial institutions that offer these services.

In this course we will cover the general requirements for complying with Regulation E, error resolution and liability, and exams. Rev. 12/20.

Course length ≈ 20 minutes.

Learning Objectives:

  • Understand the general requirements of Regulation E
  • Review that your bank protocols regarding electronic fund transfer are compliant
  • Know what financial liability customers have regarding unauthorized transactions

Course Outline:

  • Coverage
  • Disclosures
  • Error Resolution & Liability
  • Examinations

Regulation O: Insider Lending – Overview

Regulation O governs extensions of credit made by a bank to an executive officer, director, or principal shareholder. It also applies to extensions of credit made by a bank to a political or campaign committee that benefits or is controlled by such a person.

This course is intended for lending personnel. Rev 12/17. Course length ≈ 17 minutes.

Learning Objectives

  • Discuss the purpose of Regulation O
  • Understand who is subject to Regulation O
  • Define the limitations of extensions of credit to those parties

Course Outline

  • Overview
  • Insiders
  • Inclusions & Exclusions

Role and Responsibilities of Bank Directors

A bank’s board of directors sets the tone for the bank’s business and oversees the management of the bank’s activities. Those who elect the directors have confidence in the board’s abilities to guide the bank with reasonable care.

In turn, all directors must consider the bank’s interests before their own. This course helps directors understand what it means to be a bank director and the responsibilities the board of directors must ensure a safe and sound bank. Rev. 12/17. Course length ≈ 12 minutes

Learning Objectives

  • Know what qualification a bank should consider when choosing a board member
  • Understand the role and responsibilities of a bank director
  • Understand which bank policies should be reviewed by the board of directors
  • Know what to review in various reports to monitor the bank’s operations

Course Outline

  • Board Members and Composition
  • Roles and Responsibilities of Bank Directors
  • Monitoring Bank Activity

Security: Laws, Rules & Regulations

The security function's primary duty is to develop and administer a written Security Program for the institution. The Security Program should combine procedural security techniques with physical ones.

This course discusses the laws, rules, and regulations that affect the security function. This course is intended for security officers, management, and the board of directors. Rev 07/18. Course ≈ 22 minutes.

Learning Objectives

  • Define and describe industry-standard security practices.
  • Identify security regulations that affect the institution.
  • Describe how the relationship between the security function and the board of directors should work.
  • Identify the issues the institution's Security Program must address.
  • Discuss the meaning of the Bank Protection Act.
  • Identify other safety and security regulations that may be applicable.

Course Outline

  • Board Members and Composition
  • Roles and Responsibilities of Bank Directors
  • Monitoring Bank Activity

Understanding UDAAP

Unfair, deceptive, or abusive acts and practices (UDAAP) can cause significant financial injury to consumers, erode consumer confidence, and undermine the financial marketplace. Federal Regulations make it illegal for any provider of consumer financial products or services to engage in unfair, deceptive or abusive acts or practices.

This course introduces UDAAP and how to create policies and procedures and products and services that will not violate the federal regulations. This course is intended for all personnel. Rev 01/24.

Course length ≈ 33 minutes.

Learning Objectives:

  • Define UDAAP
  • Explain what an unfair, deceptive or abusive act or practice is
  • Identify acts and practices that prompt CFPB to take UDAAP enforcement action
  • Create and maintain a UDAAP compliance program

Course Outline:

  • What is UDAAP
  • Sample UDAAP Violations
  • Creating a UDAAP Compliance Program

This course discusses the Board of Directors responsibility to ensure that credit risk is managed and controlled properly on an integrated bank-wide basis.

A director must understand the bank’s credit risk profile and its credit culture. Board members need to recognize their role in reviewing and approving the banks Credit Policy as well as set the parameters for the concentration limits to maintain the risk level in the credit portfolio.

To accomplish this, they need a thorough knowledge of the bank’s lending portfolio composition as well as the key reports that will provide them with a way to measure the portfolio against the expectations that are set in the policy.

Rev–Jan. 2024.

Course length ≈ 23 minutes.

Learning Objectives

  • Understand a director’s responsibility as it relates to credit risk within your community bank.

  • Set your bank's core credit priorities.

  • Maintain an effective credit culture in the bank.

  • Recognize the importance of your credit policy.

  • Develop the proper concentration limits to manage credit risk.

  • Effectively monitor your credit portfolio to avoid surprises.

  • Course Outline:

  • Introduction

  • Setting Your Bank Credit Priorities

  • Credit Culture

  • Policies and Concentration Management

  • Measuring and Monitoring

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