Agenda

7:00 a.m. – 8:00 a.m.
Breakfast + Registration

7:00 a.m. – 8:00 a.m.
First-Time Attendee + Bank Membership Program Welcoming Breakfast
Michelle King, Chief Marketing Officer, Bank Director
Bank Director welcomes first-time attendees and our bank services members to this year’s annual Bank Audit & Risk Committees Conference. During the breakfast, first-timers and members receive an overview of what to expect over the day and a half event.

8:00 a.m. – 8:10 a.m.
Trending Topics
Al Dominick, CEO, Bank Director
Just as banks need to develop their audit and risk capabilities, skills and talents, so too do officers and directors have both an opportunity and the responsibility to stay abreast of various trends and topics.  To kick off this year’s program, we highlight the key issues to be addressed throughout the conference by surfacing non-bank trends impacting the industry.

8:10 a.m. – 9:00 a.m.
Making Sense Of Today’s Economic + Political Landscape
Scott McLucas, Managing Director, Government Affairs, KPMG LLP
Lindsey Piegza, Chief Economist, Managing Director, Stifel Financial Corp.
Moderated by: Al Dominick, CEO, Bank Director
Hear from those who are in-the-know about the current state of our economy and the federal government – and what to expect from both in the near future. How will these changes affect your bank and the priorities of both your audit and risk committees?

9:00 a.m. – 9:50 a.m.
The Banking Industry: What Does the Future Look Like?
Steven D. Hovde, Chairman & CEO, Hovde Group, LLC
This session focuses on the industry trends, operating conditions and areas of potential opportunity for those banks attending this annual conference.

9:50 a.m. – 9:55 a.m.
Pulse of the Audience
Mika Moser, President, Bank Director 
Based on the first two sessions of the day, find out how fellow audience members feel about the current state of affairs and where the future is headed.  Participate in a fast-paced, focused and fun survey of our conference attendees. 

9:55 a.m. – 10:10 a.m.
Refreshment Break

10:10 a.m. – 11:00 a.m.
Breakout Sessions (select one)

Breakout I: Financial Reporting Developments for Audit Committee Members
KT Trivedi, Senior Manager, Crowe Horwath LLP
This session focuses on the latest accounting and financial reporting developments of interest to financial institutions, including covering recent developments from standard setting and regulatory agencies.

Breakout II: Maintaining a Competitive Edge: The Importance of Stress Testing, Strategic Planning, CECL and M&A
Adam Mustafa, CEO & Co-founder, Invictus Group
The time to get ready for the new current expected credit loss model (CECL) is now. The savviest CEOs and CFOs are looking at CECL as a way to differentiate themselves from their competitors and their peers. In this presentation, we discuss the approaches and methodologies these banks are deploying to optimize their loan loss reserves under CECL and position themselves to minimize or even eliminate any shock to their earnings and capital, even on day 1 of implementation.

Breakout III: Cyber Safety & Soundness – Keeping Your Financial Institution Secure and Proving It!
Alex Hernandez, Vice President, DefenseStorm, Inc.
As technology continues to advance, so does the chance your organization will be the target of a cyber attack or the victim of cybercrime, whether from internal or external sources. Community banks are especially challenged as they deal with the same threat risks and regulatory governance expectations as the mega banks – without the same resources. This session explores current threat trends and the relationship and interdependence between cybersecurity and cyber compliance. Attendees will be provided methodologies and programs they can use immediately to make this a manageable and repeatable program that will provide continuous cyber security governance while staying ahead of the regulatory curve. 

Breakout IV: The Intersection of Risk and Finance
Kerris Lee, Corporate Risk Management Officer, Wintrust Financial Corporation
John Sjaastad, Senior Director, Global Risk Consulting, SAS Institute Inc.
Financial services firms face constant challenges to their profitability from both internal and external forces. Turns in the credit cycle and the threat of new entrants require market nimbleness, while ongoing changes in regulations and accounting standards demand an ever increasing level of analytical complexity across the organization. How can financial service firms break down their functional silos and create a holistic analytical environment to efficiently address these challenges?

11:10 a.m. – 12:00 p.m.
The Focus of Today’s Audit Committee
Robert C. Azarow, Partner, Arnold & Porter
Thomas Richlovsky, Audit Committee Chair, United Community Bank
Todd Sprang, Managing Principal, CliftonLarsonAllen LLP
Moderated by: Jack Milligan, Editor-in-Chief, Bank Director
Serving on the Audit Committee may be the toughest and most time consuming job of a board member, and it is not getting any easier. Audit Committees must focus on supervising the internal auditor, hiring an external auditor, reviewing audits and following up to ensure problems are resolved, while also focusing on big picture issues and not getting lost in the details. In this session, hear from experts in the field who will share best practices and today’s hot topics for the Audit Committee. 

12:00 p.m. – 1:00 p.m.
Networking Lunch
Sponsored by: Dixon Hughes Goodman LLP

1:00 p.m. – 1:15 p.m.
Your Take on Audit & Risk Trends
Mika Moser, President, Bank Director
Craig Sanders, Partner, Moss Adams LLP
During this interactive session, we gauge the audience’s opinions regarding topics related to both Audit and Risk as determined by Bank Director’s 2018 Risk Survey.

1:15 p.m. – 1:50 p.m.
Ensuring a Safe & Sound Banking System
Thomas J. Curry, Former Comptroller of the Currency
Jack Milligan, Editor-in-Chief, Bank Director
Hear from former Comptroller of the Currency as he sits down for a conversation with Bank Director’s Editor-in-Chief to talk about his outlook for the future and advice for those in attendance.

2:00 p.m. – 2:50 p.m.
Breakout Sessions (select one)

Breakout I: The Emerging Quantitative Measures in Assessing Credit Quality – The Overlaps and Distinctions
James F. House, President & CEO, First US Bank
Walter McNairy, Managing Partner, Dixon Hughes Goodman LLP
David Ruffin, Director, Dixon Hughes Goodman LLP
As the ALLL calculation morphs into a fair value concept under CECL, it is paramount to understand the overlap and distinction of quantitative measures between your bank’s credit mark, fair value disclosures, M&A due diligence and the upcoming CECL standard. In this session, we discuss strategic credit considerations across the bank’s loan, risk, audit and due diligence committees as banks look to tie together these different concepts to enhance efficiencies and performance. 

Breakout II: The View From 20,000 Feet Isn’t Always Perfect:  Understanding Your HR Portfolio Risk
Julia Johnson, Senior Manager, Wipfli LLP
Susan Smith, EVP & Chief Human Resources Officer, Investors Community Bank
In this session, hear about simple things that board members, senior management and risk managers should know in order to manage and mitigate an institution’s HR risks, including monitoring and managing lost productivity, disengagement, turnover, etc. This session shines a light on tools and reporting that the above group should consider and be aware of in addressing culture, organizational structure and role alignment, compensation, succession and other related items.

Breakout III: Five Steps to Simplifying the Audit Process
Greg Benson, SVP, Chief Accounting Officer, TBK Bank, SSB
Janelle Sprinzl, Senior Manager, Crowe Horwath LLP
Have you ever wondered how the audit process can be simplified? Coordination. Coordination increases trust between all parties involved in the audit. Join us to hear about the five areas where coordination can simplify the audit process.

Breakout IV: Fintech and Banking: The Challenges and Opportunities
Charles Abraham, Partner, Mazars USA LLP
James Naber, Audit Committee Chair, Apple Bank for Savings
Peter Schablik, Partner, Mazars USA LLP
Banks today are now working hand-in-hand with fintech entities and the sentiment has changed from being confrontational to acceptance as an alternate channel to attract new customers.  This session explores risk, internal control and security considerations for fintech solutions necessary for all financial services firms.

2:50 p.m. – 3:10 p.m.
Refreshment Break

3:10 p.m. – 4:00 p.m.
Breakout Sessions (select one)

Breakout I: Blockchain & The Financial Services Industry
Gary Fan, President, Ivy Koin LLC
Blockchain is the buzzword of many industries right now. But what does it actually mean and how is it being used? This session gives an overview of what blockchain actually is and the fundamentals of how it works. It also dives into the current blockchain landscape in the financial services sector and discusses how it is helping transform the way financial services can do business.

Breakout II: Establishing a Cybersecure Organization – Best Practices for Mitigating Business & Organizational Risk in the Audit Process
Erika Del Giudice, Senior Manager, Crowe Horwath LLP
Darren Perkins, VP, IT Audit Manager, Federal Home Loan Bank of Chicago
Cybersecurity is one of the most talked about risks in the financial community, yet it is also one of the most misunderstood. As a menacing threat to almost every organization, every aspect of an entity is susceptible to a cybersecurity incident and it is no longer only the IT department’s job to manage these threats and identify appropriate solutions. As cyber criminals continue to develop increasing targeted attacks, institutions must focus on identifying their enterprise risks and developing tailored solutions. Cybersecurity can no longer be a singular function, rather, it needs to be embedded throughout the enterprise, from the front line to the boardroom. This presentation focuses on how the audit process can and should play a role in creating a cybersecure organization.

Breakout III: Managing Compensation Risk
Gayle Appelbaum, Partner, McLagan
Todd Leone, Partner, McLagan
This session focuses on how the governance structure needs to be in place to effectively bridge the internal control and compensation committee frameworks. While much focus has been on the review of the incentive plans themselves, today’s risk reviews need to have a proper overall governance structure. How does management, through risk, human resources and finance, interact with both internal audit as well as the board? This session covers today’s best practices in compensation risk management.

4:10 p.m. – 5:00 p.m.
Eight Statements That Divide Opinion
Salvatore Inserra, Partner, Crowe Horwath LLP
Syed Raza, SVP, Director – Financial Crimes Compliance, BSA Officer, Texas Capital Bank
Sandra Van Trease, Audit Committee Chair, Enterprise Financial Services
Moderated by: Al Dominick, CEO, Bank Director
In this interactive session filled with audience participation, we pose statements to leading experts and audit and risk committee chairs relating to the financial disclosure process; the link between culture and how a financial institution performs and executes its strategy; and today’s regulatory, strategic and economic challenges.

5:00 p.m. – 6:00 p.m.
Networking Peer + Guest Reception
Sponsored by: Hovde Group, LLC

7:30 a.m. – 8:30 a.m.
Breakfast

8:30 a.m. – 8:45 a.m.
Day Two Welcoming Remarks
Al Dominick, CEO, Bank Director

8:45 a.m. – 9:25 a.m.
What’s Now And Next In Compliance & Regulation
Gerald R. Bessette, Associate Director, Navigant Consulting, Inc.
Pamela Perdue, Chief Regulatory Officer & EVP, Continuity
Moderated by: Mika Moser, President, Bank Director
Financial institutions spend an estimated $60-$70 billion annually on compliance, but technology continues to evolve, bringing new waves of advances in robotics, analytics and machine learning – and many opportunities as well as risks for your bank. During this session, hear ideas, strategies and solutions to reduce these extraordinary costs and more adequately manage key resources, while still managing the risks that are inherent in new technologies.

9:35 a.m. – 10:25 a.m.
Breakout Sessions (select one)

Breakout I: Mitigate Risk With Your Compensation Plan
Harry L. (Trey) Deupree, III, Consultant, Equias Alliance, an NFP Company
Phillip J. Hayes, Consultant, Equias Alliance, an NFP Company
Boards face the challenge of designing executive compensation plans, including nonqualified deferred compensation plans, that will allow the bank to recruit and retain management talent while limiting exposure to unwanted risks. Aligning these plans with the company’s long-range objectives should limit executives’ incentive to make decisions that improve short-term metrics but increase the company’s risk exposure. One-size-fits-all retention packages are usually unsuccessful in persuading a diverse group of key officers to remain with the bank. Instead, compensation plans should be designed with great care, with heightened sensitivity to the generational demographics (e.g. millennials) and motivations of key performers. This panel session reviews several essential tools necessary to recruit and retain key officers while discouraging imprudent risk-taking.

Breakout II: Cyber-Risk Oversight: Key Principles for Those Who Lead
Timothy M. Kosiek, Partner, Baker Tilly Virchow Krause, LLP
Christopher Tait, Principal, Baker Tilly Virchow Krause, LLP
The cybersecurity risk landscape continues to be a main concern for bank leadership. This presentation walks through the following five key principles that leaders should consider as they seek to enhance their oversight of the cyber-risks they face: cybersecurity is an ERM issue, not just an IT issue; understand the legal implications of cyber risks; boards should have access to cyber expertise; the cyber-risk management framework should have adequate resources; and risk management decisions based on key risks should be planned and documented. The discussion focuses on real life examples of what leading organizations are doing to manage their risks in this dynamic area.

10:25 a.m. – 10:40 a.m.
Refreshment Break

10:40 a.m. – 11:20 a.m.
Tackling Complex Challenges
Stephen Figliuolo, Executive Vice President & Chief Risk Officer, Flagstar Bank
Don McLaughlin, Risk Committee Chair, OceanFirst Bank
Moderated by: Jack Milligan, Editor-in-Chief, Bank Director
Banks face many challenges – from data breaches to problems with vendor management, from issues with regulators to cyber risks. Hear how an Audit Committee Chair, a Risk Committee Chair and a Chief Risk Officer handle these challenges and have learned from their experiences.   

11:20 a.m. – 11:25 a.m.
Closing Remarks
Jack Milligan, Editor-in-Chief, Bank Director