Change is described as making something different, doing something differently, or some thing or some one undergoing a transformation. You can change your clothes, change your attitudes, change your mind, and even make change for a dollar. What I want to talk about is accepting and embracing change and seeing change as a good thing, not as a threat and something to be resisted.
There is no question that operational risk and third party oversight are "buzz words" being spoken about inside the walls of the regulators of financial institutions. This is in large part a result of the recent regulatory changes due to the financial crisis of a few years ago. Operational risk is the risk of loss due to human error; inadequate or failed internal systems and controls; noncompliance with, laws, rules, regulations, policies, or ethical standards; and external influences such as market conditions and fraudulent activities.
The interagency appraisal and evaluation guidelines are very clear, (when) “communicating the noted deficiencies to and requesting correction of such deficiencies by the appraiser or person who prepared the evaluation, an institution should implement adequate internal controls to ensure that such communications do not result in any coercion or undue influence on the appraiser or person who performed the evaluation” That sounds simple enough, right?