BAS Case Study - March 2023


The Report of Examination (ROE) is intended to communicate the findings of an examination and support the assigned component ratings. The following suggestions may be helpful in increasing the effectiveness of written communication: • Understand the audience (primarily Board of Directors). • Comments supporting component ratings should relate to the UFIRS ratings definitions and evaluation factors. • The tone of component comments should match the assigned rating (for a 1 rated component the comments should be mostly positive; components rated 3 or worse should include very little or no favorable comments). • Consider developing an outline before you start. Coherent paragraphs include a topic sentence and supporting information. • Report of Examination comments should be fact-based, professional, and objective. • Use clear, concise, language appropriate to the subject and the intended audience. Simple language and short sentences and paragraphs are generally the most effective. • Examiners should not rely upon ratios alone to convey the ideas they wish to express. When ratios are cited, they should be in support of a conclusion, and their import should be made understandable to the reader. While ratios are meaningful to examiners, their significance is not always apparent to bankers and particularly bank directors. • Peer group comparisons are not a part of the UFIRS ratings definitions, so examiners should avoid over reliance on peer group comparisons in written commentary.

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