Cyber & IT Supervisory Forum - November 2023

Internal Use Only

Confidential –For Interagency Use Only

Business Case Recap

• In 2020, an interagency team evaluated community bank examination processes across the agencies to determine if there is a business case for using shared technology tools to support examiners and bankers. • Result of Evaluation : Across agencies, community bank examination processes share high commonality and present a compelling business case for collaborating on IT strategies that will achieve shared supervisory objectives. • The timing is right as the landscape for supervision technology is changing rapidly. In the coming years, new technologies (e.g., AWS cloud and Appian low ‐ code solution) must replace the proliferation of aging, custom ‐ built systems at the FDIC and FRS. Common problems benefit from shared solutions.

Reduced regulatory burden

Interagency alignment

Simplified IT ecosystem

Improved collaboration

Public stewardship

Lower costs

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Confidential – For Interagency Use Only

Internal Use Only

Interagency Magic Quadrant – Commonality vs. Value

All Other Processes

Assessing Business Value Where would shared technology:  relieve regulatory burden for supervised organizations and make it easier to work with other agencies on joint events?  improve the efficiency and effectiveness of processes for supervisory staff?  provide the greatest value for the largest number of stakeholders?

Assessing Commonality  Hypothesis – CBO S&S supervision across the Fed, FDIC, and States is similar for 80% of business processes. Interagency efforts get bogged down in the 20% in differences.  The team evaluated Processes, Activities and Steps across S&S supervision to look for commonalities. Conclusion: Basic business processes across CBO supervision are fundamentally similar.  WHAT we do is common, but HOW we do it is different.

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