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1 RMA Chapter Board Orientation Call September 18, 2014 Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 2 WELCOME • Thank you for volunteering on the local chapter board! • Purpose of today’s session • Today’s speakers Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 3 WHO IS RMA? Mission: RMA is a member-driven professional association whose sole purpose is to advance sound risk principles in the financial services industry. RMA helps our members use sound risk principles to improve institutional performance and financial stability, and enhance the risk competency of individuals through information, education, peer sharing, and networking. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 4 MISSION/ PURPOSE OF A CHAPTER RMA Chapters: • Serve local members and are the face of RMA to many of our members. Provide added value in local markets. • Provide networking and peer sharing opportunities. • Help retain and generate new memberships. • Help provide education in local markets. Successful Chapters: • Survey members regularly and meet demands. • Create affinity groups to serve all RMA members. • Have a strong and committed board. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 5 WHAT CHAPTERS OFFER Add member value in local markets through: – General membership meetings. – Networking events – Educational events: RMA open enrollments and chapter developed training. – Round tables Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance – Affinity group meetings (ERM, Op Risk, Compliance, YP, WIB, etc.) – CRC study groups/ info sessions. – Regional conferences – Other programs: scholarships, charity events, university. JOIN. ENGAGE. LEAD. 6 INSTITUTIONAL MEMBERSHIP • Banks, thrifts, investment banks, insurance companies, regulatory and supervisory authorities, government and quasi-government entities. • Canadian credit unions, but not U.S. credit unions. • Dues based on the total assets of the institution. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 7 INDIVIDUAL MEMBERSHIPS Associate • Only an employee of an Institutional member of RMA may become an Associate. • Annual Associate membership dues: • $75. • Chapter fees are additional (if applicable). Continuing Associate CRC Associate • Former Associates who have moved to nonmember institutions. • $150 • Individual member who has passed the CRC exam and is with a nonmember bank. • $260 Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 8 INDIVIDUAL MEMBERSHIPS (CONT.) Professional Members • Individuals from the nonbank financial services industry (finance/leasing companies). • Individuals from professional services firms (accounting, law, consulting, etc.). • Annual Professional membership dues: • $275. • Chapter fees are additional (if applicable). Academic Student • Professors teaching risk management fulltime at accredited institutions. • $175 • Full-time students with risk management major (business, finance, accounting, etc). • Undergraduate Freshman are excluded. • Membership is free and renews annually until one year past graduation date. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 9 Chapter Resources Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 10 HIGHLIGHTS 115 Chapters in North America Includes 5 in Canada Served by 5 Regional Managers Chapter categories: small, medium, large, regional, or start up. Regional chapters: • Oversee multiple local chapters (like a holding company). • Provide support to the local chapters • 4 regional chapters in the U.S. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance International chapters: • Australia • Singapore • Hong Kong JOIN. ENGAGE. LEAD. 11 CHAPTER RESOURCES Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 12 REGIONAL MANAGERS Central Region: Jamie Jones, 941-366-302 [email protected] Northeast Region: Sandy Sutermaster, 412-787-5625 [email protected] Southeast Region: Laura Ridner, 843-225-4690 [email protected] Southern Region: Cindee Munro, 623-266-2344 [email protected] Western Region: Erin Jester, 559-326-7444 [email protected] Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 13 CHAPTER RATING Chapters self report via the Chapter Planning Guide, which is intended to be a planning and performance evaluation tool. Chapters can obtain Platinum, Gold, Silver, or Bronze status based on their performance. Platinum Gold Silver Bronze Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance Platinum awards are given at the Annual Risk Management Conference. JOIN. ENGAGE. LEAD. 14 CHAPTER PLANNING GUIDE MANDATORY DEADLINES • August 15 - Board Roster Due • August 31 - Conduct a Planning Meeting and Submit Draft • January 15 - File Taxes • March 15 - Conduct Mid-Year Review • April 30 - Submit Cosponsored Educational Planner • August 15 - Submit Final Planning Guide to RM Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 15 REACHING FOR PLATINUM FOR SUCCESS – Meet minimum General Membership and Educational Offerings – Experience a net positive growth in individual membership – Successfully hold Open Enrollments as at least half of your Educational Offerings – Establish and maintain two separate affinity groups – Participate in all HQ calls (Orientation, Regional, Audio Chat and YP) – Have a signed Chapter Affiliation Agreement on File Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 16 CHAPTER RESOURCES • • • • • • • • • Regional Manager and HQ Support Chapter Planning Guide RMA website Online registration Reports Cosponsored educational classes Templates RMA’s Handbook for Chapter Board Members Awards and recognition Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 17 CHAPTER RESOURCES CHAPTER LEADERS CONFERENCE • Our way of saying thank you! • Provides chapter officers with networking opportunities and tools to enhance their leadership skills and to help them run successful chapters. • RMA covers registration and hotel stay (2 nights) for up to three chapter officers. • Mark your calendars! Scottsdale, AZ June 18-19 Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 18 YOUR ROLE AS A BOARD MEMBER • • • • • • • • • Support RMA and its mission. Contribute to the planning and execution of activities of the chapter. Help recruit new members. Ensure adequate financial resources. Protect assets and provide proper financial oversight. Build a competent board and plan for succession. Ensure legal and ethical integrity. Attend all or as many board meetings as possible. Act as a liaison between your institution and your chapter – communicate the needs of your institution to help the chapter develop appropriate events. Communicate chapter events back to your institution and encourage attendance. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 19 CHAPTER AFFILIATION AGREEMENTS Background – RMA operated in an informal way with its Chapters during most of its 100-year history. – Nonprofit organizations, such as RMA, often allowed third parties to use their trademarks – such as their logos – without much control. • This was not a major problem years ago when nonprofits were less aggressive in disputing trademarks and had charitable missions that made courts more tolerant. • • Best Practice: for a nonprofit to license its trademarks to its Chapters and to include specific controls in order that the nonprofit can police its marks to make sure that its Chapters are using the marks correctly. – See Wall Street Journal cover story, August 5, 2010. Under the Chapter Affiliation agreement, RMA grants to each Chapter a : limited, revocable, non-exclusive, non-transferable, non--assignable license To use the name “The Risk Management Association,” the acronym “RMA,” the RMA logo for official Chapter-related purposes consistent with RMA’s Mission. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 20 British Alberta Columbia Manitoba Quebec Sask. Nova Scotia Ontario AK ME WA MT OR ID WY NV CA ND MN WI SD IA NE UT AZ CO NM KS OK TX NY MI IL IN OH PA WVA VA NC SC AR MS AL GA LA FL MO KY TN VT NH MA RI CT NJ DE MD Central Region – 20 signed Northeast Region - 11 signed Southeast Region – 24 signed Southern Region – 12 signed Western Region – 21 signed Chapters & Community Banks Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 21 CHAPTER BYLAWS AND INCORPORATION • Chapter Bylaws – Review annually – Chapters should conduct business following the bylaws and update the document when changes are being made – Model set of bylaws and detailed explanation available from Regional Manager • Chapter Incorporation – 501(c)6 – Personal protection Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 22 FINANCE, TAX COMPLIANCE, INSURANCE CHAPTER OFFICER RESPONSIBILITIES Finance and Internal Controls • Develop a basic set of financial controls and reporting requirements – Manage and approve expenses; track funds received – Reconcile bank statements – Prepare financial reports for review by the Chapter Board (on a regular basis) – Develop a storage plan for chapter documents that can be easily transferred from one set of officers to the next – Be sure to have an audit committee to review the books annually Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 23 FINANCE, TAX COMPLIANCE, INSURANCE CHAPTER OFFICER RESPONSIBILITIES Tax Requirements • Every chapter is REQUIRED to file a tax return with the IRS on an ANNUAL basis – Form 990 Return of Organization Exempt From Income Tax – Chapters with gross receipts less than $50,000 are required to electronically file form 990-N – All tax returns or electronic filings are due each January 15th (based on an August 31st fiscal year) • There are failure to file penalties of up to $10,000 (actual penalties are based on the level of chapter gross receipts) – IRS will revoke tax-exempt status of any chapter that fails to meet its annual filing requirement for three consecutive years Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 24 FINANCE, TAX COMPLIANCE, INSURANCE CHAPTER OFFICER RESPONSIBILITIES Insurance Recommendations • Each chapter should determine whether it has appropriate insurance coverage – Ensure that your treasury, your chapter members, and yourselves are properly protected – Chapters are NOT covered by RMA headquarters insurance policies for your local activities, meetings, events, etc. – Consider purchasing commercial general liability insurance with a minimum of $1M coverage • As chapter officers & board members, please be sure to protect yourselves as well – You assume a degree of liability for the decisions you make or should have made – Consider purchasing Directors & Officers insurance coverage with a minimum of $1M coverage Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 25 CHAPTER BOARD ORIENTATION MEETING • Chapter Planning Guide Check List Item • Orient new board members to RMA and your chapter • Agenda Items RMA Mission – Who is RMA? Chapter board structure and succession plan Board Meetings – How many and when held? Who does the chapter serve? Events – How many? – What type? – Signature Events? RMA Resources Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 26 CHAPTER BOARD ORIENTATION MEETING • Resources Handbook for Chapter Board Members Materials from Chapter Board Orientation Audioconference Board Orientation Guide Regional Manager Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 27 Q&A Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD. 28 THANK YOU! Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance JOIN. ENGAGE. LEAD.