Pub. 2 2014 Issue 1

winter 2014 7 The bricks to build something of value Quality, honesty, integrity and trust are critical to every successful business. With these important elements as your foundation, you can begin to build real value. Through our global network of firms with more than 180,000 people in 158 countries, we provide assurance, tax and advisory services to many of the world’s most successful companies. For more information on how our Salt Lake City Banking and Capital Markets practice can help you address your business challenges, contact Ryan J. Dent at (801) 534-3883 or ryan.j.dent@us.pwc.com. © 2013 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. that should alert you to ineffective report- ing: • Reports that are too long or too de- tailed. Key points cannot be extract- ed when the volume of information presented buries the real meaning. • Reports that state only facts but provide no analytical statements or ratings. The board needs to under- stand whether the data being present- ed is positive or negative. • Reports that fail to identify the root causes of weaknesses. Failure to identify the root cause delays the implementation of corrections. • Reports that identify the root causes of deficiencies, but do not suggest appropriate corrective action. Solu- tions should be offered in reports. • Reports that only emphasize weaknesses and ignore strengths. Focusing only on the negatives may inappropriately exaggerate the scope or materiality of an identified problem. • Reports that do not reflect the materiality or severity of an issue. Treating every issue uniformly is a sign that perspective may be lacking. The report should clearly identify whether or not the issue is systemic or isolated. Oversight of a compliance program that can withstand not only regulatory scrutiny, but the changing economic environment and regulatory conditions is a tough as- signment. Proper reporting ensures proper maintenance of the compliance program, and a well-maintained program that can be clearly communicated to examiners is the key to passing the exam. Compliance Alliance is committed to providing resources for our bankers to assist with compliance; from keeping up with the changes all the way through the reporting. n Quarterly reports should focus on trends and analytics that demonstrate whether risk exposures are increasing or decreasing. The quarterly report gives insight into how the compliance program is functioning over time.