CMS Case Study

C loyd Bank and Trust Risk Assessment Summary 2020-2021

Audit Area

Risk Level

Total Score 2019-2020*

Risk Level 2019-2020

Internal Controls Changes

Management

Total Score*

Nature of Operations

Nature of Transactions

Compliance

Accounting and Regulatory Reporting Call Report

14 15 13 9

8

9 68 Moderate

95 66 54 72 55 67 68

Moderate Moderate

Accounting

13 14 12 8 11 9 67 Moderate 5 13 11 9 11 8 57 Low 4 15 10 10 10 9 58 Low 15 9 10 9 16 9 68 Moderate 10 13 11 9 10 9 62 Moderate 10 14 11 8 5 9 57 Low

Cash Disbursements Due From Banks

Low

Moderate

Fixed Assets

Low

Human Resources/Payroll

Moderate Moderate

Composite

Branch Operations

16 13 15 14 13 10 81 Moderate

83

Moderate

Deposit Operations Deposits

21 15 18 21 9

8 92 Moderate

91 88

Moderate Moderate

Remote Deposit Capture (RDC)

17 18 18 15 15 15 98 Moderate 14 16 18 10 10 15 83 Moderate 17 16 18 15 11 13 90 Moderate

Lockbox

N/A Added for 2020

Composite

90

Moderate

Electronic Funds Transfer ACH

16 17 18 10 12 15 88 Moderate 19 21 19 13 10 10 92 Moderate 10 9 10 10 12 8 59 Low 16 15 17 10 14 10 82 Moderate 16 10 16 10 14 10 76 Moderate 15 14 16 11 12 11 79 Moderate

109 High

Wire Transfers

98 65 90 90 90

Moderate Moderate Moderate Moderate Moderate

ATM

Internet/Electronic Banking

Mobile Banking

Composite

Information Systems & Technology

13 19 20 10 20 10 92 Moderate

88

Moderate

Loan Operations Commercial Loans Consumer Loans Residential Loans

18 19 21 12 12 10 92 Moderate 21 16 21 10 12 10 90 Moderate 21 16 21 14 12 10 94 Moderate 20 17 21 12 12 10 92 Moderate

104 Moderate

110 High

104 Moderate

Composite

106 High

Mortgage Banking

21 16 16 14 12 10 89 Moderate

90

Moderate

Risk Management Investments Interest Rate Risk (IRR)

10 13 14 10 8 10 65 Moderate 20 21 18 11 8 10 88 Moderate 17 18 20 12 8 10 85 Moderate 16 17 17 11 8 10 79 Moderate

87 97

Moderate Moderate

Liquidity

101 Moderate

Composite

94

Moderate

Bank Secrecy Act**

20 9 21 17 13 9 89 Moderate

93

Moderate

*Determination of Risk Level

Score 0-59 60-104 >104

Risk Level High Moderate Low

** BSA has training and development in the place of nature of transactions.

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