Why We Did This Evaluation
“The Export-Import Bank Reform and Reauthorization Act of 2015 (the 2015 Reauthorization Act) requires the OIG to evaluate the Bank’s portfolio risk management policies and the implementation of the duties assigned to the Chief Risk Officer (CRO) and to submit a written report with its findings to Congress every three years, with this version no later than December 4, 2019.”
What We Found
“In accordance with statutory requirements contained in the 2015 Reauthorization Act, we evaluated the Bank’s portfolio risk management policies and the extent to which EXIM has implemented the provisions related to the appointment of the Chief Risk Officer and the duties ascribed to the CRO. As part of this effort, we reviewed prior reports; reviewed the Bank’s documentation on PRM and MRM, the overall ERM program as a whole, as well as the role and responsibilities of the CRO; researched and reviewed laws, rules, regulations, and industry practices; and we conducted a limited round of interviews with the CRO and key stakeholders directly involved in managing Bank risks.”
“EXIM’s current PRM processes and procedures are strong and improving. Broadly, key stakeholders have been working with the CRO to push forward items that will strengthen the PRM procedures and mitigate risks, as well as acknowledging areas where such efforts are either nascent or in need of additional attention…”
What We Recommend
“We made two recommendations to bolster EXIM’s Portfolio Risk Management (PRM) procedures and a third recommendation to improve the Bank’s integration of risk management activities with internal controls…”
Source: Evaluation of EXIM’s Portfolio Risk Management Procedures and CRO Responsibilities – December 2, 2019. Oversight.gov.