Governance
SWOT
Strengths, Weaknesses, Opportunities, Threats
- regulation requires annual review of internal and external factors
Cyber Risk Management
Technology Plan
Increase loan volume by 15 percent and maintain accruing volume above 2024 levels
What is a Goal
The board must adopt a business plan within how many days?
30 days
Quantitative YBS goals/targets must be based on what?
reasonably reliable demographic data
T or F:
One of the board's role in planning is to develop a detailed operating budget?
F. They would only review and approve
Demographics, Geography, Types of agriculture practiced
Marketing Plan
Should also include Strategies and actions:
– to market institution’s products and services
–to eligible and creditworthy persons
–focusing on diversity and inclusion
–within each market segment
Strategic objective
(Long term, broad, externally focused)
The business plan must include pro forma financial statement for how many succeeding years?
3 years
FCA Reg 618.8440
What could be an internal threat to an association's asset quality?
Poor loan servicing, LUS, management influence
How often should adjustments to the business plan be made?
As warranted
Daily Double
Kendrick Lamar
Market financially related services through Facebook, billboards, and radio
Operational Objective (short term, day-to-day)
An itemized operating budget must be shown for how many years?
At least 1 year
I'm a farmer (under 35) and I need financing for my new diary operation. Can you help me identify some qualitative factors for YBS farmers?
1. Mission Statement
2. Internal Controls
3. Offer related services YBS farmer needs
4. Coordinating credit and services offered with
other System institutions, Governmental and
private sources of credit
5. Implement effective outreach programs to
attract YBS farmers and ranchers, which may
include
•Advertising campaigns
•Educational credit and services programs
•Advisory committee
Directors should be "OLD". What does O.L.D. stand for?
Obedience
Loyalty
Due care
May be contained in other board approved documents, BUT it must be approved annually and summarized and referenced within the business plan.
HCP
Affirmative Action, succession plan
I couldn't decide, so I opted to support both.
Goals
T or F:
Per FCA Regulation, an association's Human Capital Plan must contain a description of the territory's YBS demographics.
False
Requires what?
3 elements: For management and workforce:
- Description and assessment of strengths and weaknesses
- Description of succession programs
- Strategies and actions to strive for diversity and inclusion
Annually board reporting on the progress the institution has made in accomplishing its strategies and actions is required for which two plans (618.8440)
HCM
Marketing Plan
YBS has reporting requirements (separate regulations)
The board of directors have 4 primary roles. What are they?
Oversight
Policy Making
Strategic direction and business planning
Relationship with Management
The board MUST consider these 7 factors in capital planning:
1) Capability of management and board
2) Quality of policies, procedures, and internal
controls
3) Quality and quantity of earnings
4) Asset Quality and adequacy of ALL
5) Sufficiency of liquid funds
6) Needs of the customer base
7) Other risk-oriented activities which may warrant additional capital
This type of plan is meant to be preventative and help avoid "possible" adverse events (i.e. your Plan B)
Contingency Planning
FCA Regulation 609.935 (Cyber Risk Mgmt) was revised following the passing of the final rule in late 2023. What was the effective date of the rule?
Jan 1, 2025
What are three 2025 NOP focus areas that should be discussed within the annual business plan?
Bonus: Can you name the corresponding plans?
Sustainability of Capital Practices - Capital Plan
Succession Plan - Human Capital Plan
Mission focused lending - YBS
Innovation/AI and Cyber risk Management - Technology Plan