2. Helping financial institutions succeed Helping you to better anticipate and
Financial institutions must manage an array of business manage business risks involves taking a
challenges, including ensuring regulatory compliance, strategic approach to mitigating threats
identifying and mitigating risk, monitoring asset quality and increasing opportunities to enhance
and planning strategically for the future. But performing
business performance.
all such tasks internally isn’t feasible or practical for
many institutions. Services provided by McGladrey
For these sensitive functions, partnering with a trusted Assurance services
firm with experience in your industry allows you to The client service team assigned to your audit will be
maintain optimal staffing levels. Additionally, it helps composed of professionals with knowledge of financial
ensure independence while bringing new perspective to institutions. Audit procedures will be tailored to address
the integrated, long-term outcomes you need. risks specific to your institution – enabling a reliable
independent audit that helps you plan for the future and
Our commitment to your industry
identify areas where you can become more effective.
McGladrey serves over 2,000 financial institution clients
Our partners and directors are extensively involved in
nationwide, including banks and savings institutions, trust
the audit process and actively communicate with your
organizations, credit unions, mortgage companies, and
institution’s leadership. We believe regular, partner-level
finance and leasing companies. Clients range from newly
attention is what you deserve - it’s how we add value to
chartered institutions to institutions with billions of dollars
the audit process.
in assets.
Our audit, accounting, tax and business consulting Tax preparation and planning
professionals are committed to adding value in our In the realm of tax preparation and planning, deadlines
services for these organizations. and compliance are important. But they are only part
of what you need to consider when taking a business
McGladrey & Pullen ranks as the fifth largest U.S.
approach to managing your tax exposure
provider of accounting, tax and business consulting
services (source: Accounting Today), with 6,500 Our tax professionals will assess your overall tax structure
professionals and associates in more than 70 offices. and help you identify any opportunities to reduce tax
liability. We’ll also take a closer look at key areas of your
operations to ensure you’re doing business in a tax-
advantaged manner, including utilizing all available
tax credits.
3. Our tax advisors can provide guidance on various issues Lack of expertise or experience in a given area of
related to ownership structure changes. And if you’re operations is another concern. Without adequate
considering an acquisition, merger, sale or liquidation, knowledge and a broad base of experience, an auditor
our tax professionals can assist you with due diligence can’t provide value or insight into the department or
and help you structure complex transactions in the most function being audited.
advantageous manner.
To avoid such situations and ensure a knowledgeable,
Risk management strategy independent and effective internal audit, many institutions
choose to outsource their internal audit function.
Your day-to-day business activity involves analyzing an
array of risks, including those associated with credit, Our approach to internal audit focuses on processes
interest rates, liquidity, security and compliance. and procedures established by management. Once we
understand your operations and tone at the top, we tailor
Today, risk management requires testing and assessing a
an approach that will align with your risks, as well as your
variety of controls – a process that goes far beyond what
business objectives.
was once adequate. A comprehensive risk management
program for financial institutions encompasses the From this vantage point, we can help you better foresee
following areas: and manage risks – thereby allowing you to mitigate
threats and increase opportunities for enhanced
• Internal audit
business performance.
• IT security and controls
• Regulatory compliance IT security and controls
• Loan review
An information technology failure or breach of security can
Internal audit cause serious financial damage and harm an institution’s
reputation. For these reasons, as well as legal and
For financial institutions, nearly every activity involves risk
regulatory considerations, financial institutions should
– whether it’s making a loan, opening a deposit account,
obtain an independent review of general controls, conduct
conducting a wire transfer or purchasing securities.
security testing for Internet-based activities and ensure
An internal audit should help management recognize,
adequate business continuity planning.
evaluate and control risk in these and other areas
of operations.
But for some organizations, maintaining an internal audit
department may not be practical. In resource-strapped
environments, internal auditors may be called upon
to assist with monthly closing of the general ledger or
reporting to the cashier or president – the same people
they are expected to audit.
4. General controls review. Establishing controls begins comprehensive program of identifying and minimizing the
with management and the board of directors who potential for, and impact of, an operational interruption,
must determine appropriate policies and procedures. coupled with advance preparation. A business continuity
However, implementation of firewalls and other internal plan does not simply help ensure recovery from a
and external security measures often require significant major disaster such as a fire or flood, computer crime
technical knowledge. or terrorism; it also helps assure your critical operations
continue every day, in the face of temporary disruptions
Many banks simply don’t retain personnel with this level of
like power or network outages. An optimized business
technical expertise. Nor is it prudent for staff who manage
continuity plan allows your organization to:
and support the bank’s systems to conduct such reviews.
• Identify and mitigate risks before a disaster occurs
Any information security professionals you engage for
• Comply with regulatory requirements
a general controls review should be certified in their
• Minimize disruptions to critical operations
respective areas of practice. Our IT specialists are certified
• Protect your customers, employees and assets
in a variety of information security areas and participate in
• Ensure organizational stability
ongoing training and education to maintain the highest
• Provide for an orderly recovery
standards of the profession.
• Reduce potential legal liability
Security testing of Internet-based activities. External • Minimize decision-making time during a
threats to your business can take a number of forms. disaster event
But Internet-based activities – which often involve
Our advisors, many of whom are Certified Business
transmission and storage of private customer data – can
Continuity Professionals (CBCPs), have developed
present an especially sensitive target.
hundreds of plans for financial service organizations across
Our technology risk management professionals will work the nation. Our comprehensive, industry-focused, business
with you to assess network and application security and continuity consulting services include:
conduct penetration testing – helping you to effectively
• Business impact analysis
mitigate potential exposure to unauthorized access.
• Continuity plan development, review
Business continuity planning. It is our view that business and enhancement
continuity planning is the process of risk identification and • Design and facilitation of testing exercises
reduction, coupled with advanced planning to ensure your • Staff training
organization can survive an unforeseen crisis. Business • Development of plan maintenance strategies
continuity planning is more than a document; it is a
5. Regulatory compliance Loan reviews
The financial industry has always been subject to its share A loan review helps ensure your institution is actively
of regulation, including those mandated by the FFIEC, managing and monitoring credit risk within the loan
Sarbanes-Oxley legislation, the Bank Secrecy Act and Anti- portfolio. While loan reviews are indispensable for a
Money Laundering legislation number of regulatory and operational reasons, conducting
this process internally presents challenges for financial
Over the last several years, regulatory agencies have
institutions of all sizes.
implemented risk-focused examinations to evaluate
financial institutions’ safety and soundness. Examinations When faced with issues such as limited staffing and
also assess areas such as internal controls, financial “depth of bench,” we can help you achieve your loan
condition and compliance with applicable laws and review objectives.
regulations. An institution’s most vulnerable areas receive
We offer full-service loan review solutions for a variety
the greatest scrutiny.
of lending products and services. Whether you need
A comprehensive and effective compliance program will assistance with assessing documentation and compliance
have the following components: with established underwriting guidelines, managing credit
risk or another critical function, our services will be tailored
• Management support
for your needs.
• Functional responsibility
• Internal controls Corporate governance
• Up-to-date information
Regardless of an institution’s size, building strategic board
• Training
capabilities is essential. You need a board of directors who
• Testing
will ensure regulatory compliance, boost customer and
• Reporting
investor confidence, and foster long-term success.
• Follow up
But board development is a time-consuming and
We also offer risk assessment, operational effectiveness
challenging task, and qualified candidates are increasingly
assessment and program reeingineering as well as
difficult to recruit.
independent testing and technology services for
BSA/AML compliance. Our consultants can work with you to recruit and assess
candidates while building capabilities of your existing
We can perform annual, semi-annual or quarterly
board. We’ll also help you define roles and responsibilities,
compliance testing related to lending, deposits,
create competency-based assignments and promote a
advertising and other areas of concern. Our consultants
climate of trust, accountability and communication.
can also help you develop policies and procedures and
provide training on regulatory topics.
Our minimally disruptive compliance examinations allow
your personnel to stay focused on business operations.
6. Our services related to corporate governance We offer a range of compensation services, including:
functions include:
• Base salary compensation and administration
• Working with management to prepare a • Employee incentive compensation
strategic plan • Executive and management compensation
• Developing director and executive • Sales compensation
compensation strategies
As part of the plan development process, we identify
• Establishing audit and finance
guiding principles and compensation program
committee processes
characteristics that support these principles. Our
• Conducting CEO evaluations and managing
consultants assess how well current programs meet these
CEO succession
principles, identify any gaps and develop alternative
• Evaluating compliance with legal and
approaches as needed.
regulatory requirements
• Recruiting and assessing board candidates We consider a mix of fixed and variable compensation
• Developing a climate of fiscal accountability plans and develop a compensation program that’s
aligned with your strategic objectives. This helps support
We can also conduct a diagnostic review of your existing
strategic business objectives while controlling total
corporate governance structure. This involves activities
compensation costs.
such as evaluating roles of the board, individual members
and management – and their interaction with each other. We help build your compensation plan around the
Additionally, we’ll conduct board member orientation following elements:
and education, assess board and committee structure and
processes, and review communication and information • Base salary
protocols to ensure best practices are being upheld. • Short-term and annual incentives, including cash
or stock bonuses and individual, team or company-
Executive compensation based performance incentives
Compensation plans are integral to attracting, motivating • Long-term incentive plans, including stock
and retaining top executives. They can also be a valuable options, stock appreciation rights, phantom stock,
tool in keeping your institution on track toward meeting performance shares and deferred compensation
performance goals. • Perquisites
• Fringe benefits, including employee benefits and
While most businesses understand the benefits of a well- qualified profit-sharing/pension plans
designed compensation plan, developing a successful
program can be a daunting and complex task. We can help
you develop an executive compensation plan that sets you
apart from competitors while providing key advantages for
your institution.
7. Strategic planning Strategic IT planning. Your information systems are a
critical resource for your organization, helping you gain
Strategic business planning. Financial institutions that
a competitive advantage, bolster staff productivity and
research, develop and implement strategic plans are
enable your organization to run more effectively. They’re
positioned to effectively deploy capital. Their decisions
also continually changing. To keep your information
are based on consensus from an informed management
strategy aligned with your organization’s business goals,
team. And they typically implement change to proactively
you need a long-range plan that addresses current
manage the institution to stay on track toward achieving
and future systems requirements. That’s why strategic
its goals – rather than simply reacting to competition and
information technology planning is critical to your success.
other challenges.
Our seasoned, financial institution-focused advisors help
Our professionals have the knowledge and skills to
to build an information technology plan that is more
help your organization develop and implement a
closely integrated and aligned with your organizational
comprehensive and detailed strategic plan. We work with
strategy. Our approach to strategic information technology
you on all aspects of your strategic planning process to
planning often includes the following:
help you carve out a distinct competitive advantage for
your institution. Strategy consulting services include: • Analysis of information and needs gathered
through in-depth interviews with your
• Comprehensive strategic situation assessments
management team and staff
• Professionally delivered and facilitated strategic
• Identification of requirements
planning retreats
• Prioritization of system improvement opportunities
• Leadership coaching and training
• System selection and vendor negotiations
• Support services for stakeholder communication
• Co-implementation services For more information on how McGladrey can work with
• Plan authorship and documentation services your financial institution, visit www.mcgladrey.com.
Our consultants use a planning process that helps you
determine what you want your organization to look like
in the future. With this vision in mind, you’re poised to
optimize potential in the right markets, organize internally
to meet challenges, overcome operational obstacles, and
meet and exceed growth goals.
