United States

Three banks, three risk management challenges, one solution


Effective risk management is a paramount concern for any financial institution. Critical areas like internal audit, SOX compliance and loan quality reviews are more important than ever before. The following three case studies show how McGladrey was able to help three different banks address specific risk concerns in response to three different challenges.

Managing risk during aggressive growth

A bank with $500 million in assets had a plan to double in size to $1 billion within two years through a combination of acquisitions and organic growth. But that raised a variety of issues they could no longer meet through their current advisor relationships – they wanted a larger firm with deeper experience and resources. Specific needs included:

  • Internal audit services
  • Special projects and staff augmentation for the compliance department
  • FDICIA and SOX compliance
  • Loan credit quality reviews
  • IPO readiness in anticipation of a public offering
  • Controls efficiency and loan losses methodologies compliant with BSA/AML requirements

McGladrey helped this client meet these and other challenges through a broad consulting relationship.

Managing risk through organizational change

A bank with $1 billion in assets needed help to implement an internal audit plan with consistent procedures and methodologies after recent organizational changes. They also looked to establish a relationship with a large, flexible firm positioned to meet their critical future risk issues. They chose McGladrey for:

  • Internal audit planning and outsourcing
  • SOX optimization
  • Loan review

Learn how McGladrey helped this client meet its current and long-term risk goals.

Managing risk through personnel changes

When the head of internal audit at a $12 billion dollar bank became ill, concerns about the internal audit department’s effectiveness started to surface. To address these issues and get the most of its internal audit investment, the bank spent a considerable amount on outside advisors, but wasn’t seeing adequate return on that investment. Anticipating that regulators would be more stringent moving forward. Management sought:

  • A more proactive and efficient internal audit
  • More cost-effective risk management overall
  • Assistance in alleviating its audit department issues

McGladrey delivered the value this client was looking for across a range of issues.

In this issue

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Seven Questions Your Company Should Answer About Your IT Disaster Recovery Plan

2013 McGladrey Financial Institution Systems Survey

Banks can drive growth, manage risk through M&A

Three banks, three risk management challenges, one solution

Wire fraud and identity theft: Risks and prevention for banks and consumers