"Survey says��" We're on the Right Track

When I joined the banking industry as a trainee in 1965, one of the first tools I was given to begin the daunting task of credit analysis was the RMA Annual Statement Studies. Indeed, armed with the Statement Studies and RMA'S Principles for the Exchange of Commercial Credit Information, I quickly learned how to conduct a successful credit review of an existing or prospective client. RMA played a key role in equipping me with fundamental risk analysis tools that I used throughout my career.

Much has changed in the financial services industry since 1965, but there are two immutable truths:

1. Risk can he managed.

2. The institution that weaves into its very DNA a thoughtful, responsive, and well-understood risk management process not only survives, it thrives.

We are experiencing a much tougher economic environment than we faced a year ago. The largest state in the U.S., California, is on what I like to call code alert. We really do not know what the impact of the energy situation in California will be at this point. Nationally, layoffs and unemployment insurance claims are rising, although they are doing so from all-time lows. The Federal Reserve has, in five separate actions over the past five months, reduced the Federal funds rate to 250 basis points and is poised to take further action as necessary.

Clearly, the risks are up and banks' balance sheets will feel the impact. We are at a point where the problems appear to have been recognized by bankers and regulators alike. We also do not see any evidence of overreaction. Nonetheless, there can be no doubt that losses will tick upward given the slowing economy.

This is certainly an interesting time in which to become RMA's sixth president and CEO. I am very proud of this honor and the association I've come to lead. During my short time here, I've traveled extensively, attending four round tables, two council meetings in Washington, D.C., and three conferences. It's also been my pleasure to meet almost all of our chapter leaders. I have been amazed at the level, and quality of work this organization produces.

RMA recently concluded its Member Satisfaction Survey, both to gauge the current level of satisfaction and to serve as a benchmark against which to measure satisfaction levels in the future. RMA garnered an exceedingly high overall satisfaction level, with 87% of those surveyed being satisfied with our association. This is a very high number and something that RMA members and staff should be proud of.

We also gained valuable insight into your perception of RMA and what we do. Our current efforts to provide you with a very high caliber of training and education programs and publications have been validated. We've received confirmation that we are helping you to manage the increasingly complex risks within your Institutions. We know that you appreciate our closer relationships with the regulators. And we've learned that increased value to you has come in tandem with increased involvement with RMA. In the coming year, we'll dig deeper into this survey research to seek out ways in which we can increase our value to you.

I assure you that we will not take for granted the tremendous loyalty and support shown to RMA over our 87-year history. Our value to you must be measured in how well our total product set helps you to be quicker, smarter, and to view and manage risk comprehensively. We also realize that a more challenging economic environment makes RMA all the more valuable. We are working hard to provide that value, and I welcome your thoughts and suggestions as to how RMA can serve you even better.

Maurice H. Hartigan II President & CEO

COPYRIGHT 2001 The Risk Management Association
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