The Bank Exams Tailored to Risk Process Promotes Risk-Focused Supervision of Community Banking Organizations, but Training Can Be Enhanced

Date Issued

Monday, March 3, 2025

Submitting OIG

Federal Reserve Board & CFPB OIG

Agencies Reviewed/Investigated

Board of Governors of the Federal Reserve System

Report Number

2025-SR-B-003

Report Type

Inspection / Evaluation

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 2 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
Develop training for examination staff that (a) provides an overview of the Bank Exams Tailored to Risk model risk metrics, adjustment factors, and bump-up rules. (b) provides an overview of the process for using Bank Exams Tailored to Risk to scope an examination. (c) reinforces the resources and guidance materials available to help examination staff understand these topics.
2	No	$0	$0
Establish a process to periodically assess the need for additional training as the Bank Exams Tailored to Risk Program redevelops the models and implements new adjustment factors and bump-up rules.