As 2025 approaches, it’s important for financial institutions to begin preparing their budgets for the upcoming year. A critical part of financial planning involves scheduling the necessary audits and reviews to support compliance, manage risk, and strengthen operational safeguards. Below are key reviews to consider when budgeting for 2025.
BSA/AML Audit
Conducting a Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) Audit helps financial institutions align their processes with federal regulations. This audit reviews your institution’s controls and procedures related to identifying and reporting money laundering, terrorism financing, and other financial crimes.
ACH Review
An Automated Clearing House (ACH) Review is essential for evaluating processes to confirm they meet current regulatory standards. This review helps identify risks within payment transfers and supports the security of ACH operations.
ACL Review
Reviewing the Allowance for Credit Losses (ACL) is key in evaluating how your institution prepares for potential loan defaults. This review assesses the validity of reserve calculations and helps confirm that they align with applicable guidelines.
IRR Review
Interest rate fluctuations can have a notable impact on financial institutions. An Interest Rate Risk (IRR) Review assesses exposure to these changes, helping your institution review strategies for managing risks related to interest rate volatility.
Loan Review
A detailed review of loan relationships is crucial to assessing the risks they may present. This review evaluates loan documentation, borrower creditworthiness, and alignment with internal lending policies to help manage exposure to potential losses.
IT Review
With growing concerns over cyber threats, an IT Review provides insight into the effectiveness of your institution’s information systems. This review focuses on data security and the strength of IT governance in protecting sensitive information.
Internal Network Vulnerability Assessment & Penetration Test
A network vulnerability assessment and penetration test help identify potential weaknesses in your internal systems. These assessments determine what vulnerabilities are present on the network and evaluate areas where cyber threats might pose risks, allowing for improvements in system defenses.
At KPM CPAs & Advisors, we recognize the complexities that financial institutions face when planning for the future. Our services support institutions in navigating regulatory compliance, risk management, and operational security.
Request a proposal today to explore how we can assist with your year-end planning and set your institution on a path toward success in 2025.