Weekly Update from the RMA Coronavirus Blog – April 2, 2020

The following includes information from RMA’s Coronavirus Blog, which provides market intelligence on how financial institutions are managing coronavirus risks in various ways. For access to this blog, which is updated regularly and includes peer sharing by experienced risk managers, become an RMA member.

Last week’s calls with member institutions focused on critical topics such as fraud risk, outsourcing, capital planning, employment issues, and much more. (For insight into these calls, click here. If you would like to join any of these calls, reach out to the host listed.) Below is a small sampling of what was discussed:

  • With so many working from home during the COVID-19 crisis, the opportunities for cyber fraud skyrocket. Participants on a recent fraud risk round table call shared several tips to mitigate risks, including turning off Alexa and Siri while working from home. Work from home linked to offshore offices presents challenges as well. Responses discussed included granting tokens and blocking external emails, USB, and the ability to print.

  • In an RMA call with chief compliance officers, solutions and recommendations were shared for the challenges of paying and closing on loans presented by the COVID-19 pandemic. Solutions included an online portal for consumers to take advantage of hardship programs being offered, accelerating e-sign in commercial lending, and implementing virtual mortgage closings with GSE approval.

  • A group of large bank CROs noted that offshore spreading and analysis work being done in India has been affected. Most banks have their analysts and developers working from home in India. The arrangement is mostly working well, they said, except for occasional public bandwidth issues in local areas.

  • Regarding capital planning, it was noted that the Bank of England cancelled stress testing for this round. Banks mentioned that they were running their CCAR as they see the economy and it will be hard to mimic what is happening. Banks are planning to finish the CCAR requirement and having daily liquidity conversations with the Fed and weekly ones on credit operation and market conditions.

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