The safety and soundness of loans secured
by real estate depend on adequate underwriting supporting the
transaction and thorough ongoing account management. A
valuation of the real estate collateral - an essential
component of these processes - consists of either a valid real
estate appraisal or evaluation.
The RMA Journal, June 2003, has an
excellent section on Commercial Real Estate including these
articles:
• A Guide to Real Estate Appraisals
• Differentiating the Risk of Commercial Real Estate
Mortgages
• Inside CRE Lending
• Environmental Risk Screening: A Prudent Risk Management
Practice for Lenders
If you are not currently receiving The RMA Journal
and would like more information on how to receive this great
resource each month, call 1-800-677-7621.
Master the Professional Art of Networking
Networking is a powerful and essential career-development
tool. But talking to total strangers can be difficult and
uncomfortable for some people. Here are some tips for
perfecting the art of networking both in and out of your work
environment:
§
Join an organization.
Professional associations, such as RMA, are a great
way to meet people without the pressure and formal
structure you may find under other circumstances.
§
Volunteer for projects or
create new ones. Don’t be afraid to take on a new task
or come up with an idea for something that could benefit
your company. This shows your talents, which may lead to
new responsibilities.
§
Demonstrate an upbeat and
confident attitude. Such behaviors are noticed and
talked about. Avoid complaining and being pessimistic when
meeting anyone new.
§
Identify people within your
institution or association who can help you get ahead or
expand within your current position.
§
Talk to people in your
network about your goals and ambitions. These people
may recommend a way to achieve those goals or put you in
contact with someone who can help.
Once you establish relationships, commit the time and
energy needed to get to know everyone and have them get to
know you. Identify the key people you want to keep in your
network, and reinforce the contacts. Make networking part of
your routine. It takes time, patience and dedication to be
successful at networking, but it is well worth the effort.
Article from 2003 Briefings Publishing
Group
National Conferences
October 5-7- 2003 Risk Management Conference,
(Formerly RMA’s Annual Conference) Baltimore, MD.
October 23-24, 2003 Small Business Banking Conference,
Baltimore Marriott Waterfront Hotel, Baltimore, MD.
November 5-7, 2003 Enterprise-Wide Risk Management
Workshop, Atlanta, GA.
Industry-Led Risk Management Initiative
Provides Commercial Credit Benchmarking
RMA and AFS Launch Risk Analysis Service
RMA—The Risk Management Association, in
alliance with Automated Financial Systems (AFS), launched an
independent, external benchmarking service for commercial
lending risk exposure. The Risk Analysis Service
offers a never-before-available look at the performance and
composition of credit risk. Risk Analysis Service will acquire
and analyze a participating institution’s commercial loan
information, and report on its risk profile as well as on how
it compares to the industry.
The Service is expected to provide
information that will be used for risk self-assessment
purposes by exposing segments of the portfolio where excessive
risk is occurring. Designed primarily to enhance sound risk
management practices within the industry by providing
consistently prepared, industry-standard benchmarks, the
Service will also help both line and risk managers meet
stringent new reporting requirements. The Service will provide
information that can be used to gain further insight into
commercial loan default and loss trends as well as refine
risk-rating systems.
