Bank Audit Committees Wrestling with Crowded Agendas
Although financial reporting and internal control risk continue to share top agenda spots with regulatory compliance issues, bank audit committee chairs at a September 19, NYSE Governance Services, Corporate Board Member peer forum cosponsored by KPMG LLP said the focus of their attention continues to broaden considerably in the post-Great Recession era.
Among the other key issues vying for their attention, audit committee chairs at the forum inside the New York Stock Exchange said technology concerns – particularly those involving cyber security risks, growth through mobile banking applications, and upgrading information technology (IT) platforms – are gaining a high profile.
Further, they said, they are placing more focus on risk management, the effectiveness of internal audit, and proactive engagement with regulators in this prolonged period of tight net-interest margins, slow top-line growth, and an increasingly fickle customer base.
Given the array of traditional and emerging demands, the peer forum attendees expressed concerns about oversight overload – and their ability to keep pace with the speed of change that is shaping the banking industry. From the basic issue of having adequate time to focus on their crowded agendas, to the broader concern about having the requisite expertise to oversee management’s plans to employ new technologies to connect with customers, the audit committee chairs aired numerous worries about the ability to maintain a high-level of effectiveness moving forward.
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