Smart Scope is a strategically combined package of
• Educational webinars
• Reporting services
• Modeling workshops
• Consulting

This program provides a user-friendly, economical financial management tool at your finger tips. The practical, financial analysis framework recognizes regulatory needs and builds on that foundation to assess and manage risk proactively.

Educational Webinars:  Register for the webinar series

Session 1 – This 90-minute session provides the foundation for participants in the series to build upon. The session begins with an overview of the series objectives, followed by risk management essentials for credit unions, including expectations for understanding at the board and management level as well as documentation of the decision making process.

Session 2 – Financial Relationships in the Credit Union
This session provides the user with an understanding of financial relationships within the credit union through an exploration of “Tree Diagrams”. Effectively presenting complex data makes the process of understanding changes easier for non-financial parties.

Session 3 – Asset & Liability Management Basics
This session provides the new user with an extension of the Financial Relationships class through an exploration and building of a basic understanding of ALM theory. Discussions will center on the importance of understanding your balance sheet and income statement cash flows, the function of a GAP analysis as well as a look at different measures for managing risk.

We will examine the balance sheet components focusing on cash flow turnover and how term/rate relationships impact ALM.

Session 4 – Interpreting and Making Decisions using IRR Reports
This session provides the new user with a basic understanding of risk evaluation from an income or value at risk standpoint. The session will examine situations and pose questions on how to interpret common reports and take actions to enhance performance. With the emergence of value at risk measures, we will examine the theory of value and practical application for credit union decision making. Critical issues such as discount rate determination, valuation of non-maturity deposits and incorporating both income and value measures into a decision making framework will be discussed.

Session 5 – Effective ALCO Reporting
This session will provide the new user with a basic understanding of risk evaluation from an income or value at risk standpoint. The session will lay out the reporting and meeting agendas for reporting risks to the board and ALCO. Discussion on setting appropriate policy limits for Interest Rate Risk, Liquidity and credit risk will be examined.

Modeling Workshop:

In order to understand risks to a plan, you must have a plan. This plan is then tested under different interest rates providing an earnings and value at risk profile. Once the profile is in place, strategies to improve earnings, modify balance sheet mix or otherwise manage the future can be assessed. For credit unions with their own ALM model, simply provide a current risk assessment and bring your model to the session to find areas to improve earnings. Those that are not running a model, provide us with an ARIES download file & forecast assumptions for growth, fees & expenses. We will load our ALM model and provide a baseline forecast.

During the session we will help the credit union to understand their projections, the critical assumptions that impact the forecasts, and assess possible scenarios to improve performance. The end result is a projected earnings forecast that includes balance sheet targets such as loan originations by category, funding targets for share retention/growth, key income statement changes from new programs or expenses, and an assessment of the plan’s earnings and NEV levels under various interest rate scenarios.

Reporting Service:

It is critical that credit unions include in their reporting information that communicates to the board the trends and level of performance versus risk. We have developed a set of financial trend reports based upon the call report data that shows the past 12 quarters of financial performance, in an easy to read graphical/visual format. This framework highlights the major elements of risk management for interest rate, liquidity and credit risks. Example Report

For more information on Smart Scope, please contact a Relationship Development Officer at (800) 242-4747 or investments@corpcu.com.