Messages going & coming

RMA Journal, The, Sept, 2002

It has been a great honor to serve as the RMA chair, but, once again, I know that I have received more than I gave. That is I the true beauty of RMA--its success is our success.

Two major objectives for our association this past year were to deepen relationships within RMA and to develop a strategic plan related to the association's new name of the Risk Management Association. In the aftermath of September 11, just days into my year as chair, our association, like so many others, had many unexpected challenges to meet. Plans, meetings, and agendas worldwide were cancelled or modified. The need to deepen relationships intensified during the fourth quarter as members needed assurance that their association was there for them. We wanted to hear and respond to your needs, and we worked to assure you that RMA was living up to its mission. As my term draws to a close, I'm gratified to report that the number of meaningful "touches" with chapters more than doubled those of any prior year.

This past spring, RMA stepped up the pace of expanding its core competencies beyond credit risk management. This expansion includes the development of competencies related to market and operational risks. Direction has been set and momentum exists to develop the needed programs, curriculums, round tables, publications, and more for these other areas of risk.

Many people contributed to this year's success. Mary Jane Verette, Paige Braun, and many other co-workers at Frost were marvelous in helping me prepare for my many visits and covering for me during my absences. The wonderful RMA staff kept me out of trouble and helped me manage my schedule so that I could still have a paying job with Frost Bank. And my family provided unconditional support and understanding.

RMA met the challenges before it and became a stronger, more united association with great momentum. RMA's incoming chair, Sandra Jansky, possesses the commitment, competency, and compassion to take us to the next level and actualize a very bright future.

Bill Perotti, RMA Chair, 2001-2002

John Maynard Keynes once said, "The investor's perception is why risk management matters so much to bank shareholders." No words could ring truer for the times we live in today.

Our investors and shareholders today are not sure who or what they can believe. Headlines spout more bad news each day about poor accounting practice and misleading or sometimes false financial statements. Corporate governance issues have played havoc with the markets. Risk management practices are being discussed in boardrooms everywhere.

Corporate America has learned the true definition of reputation and market risk. Over the last several months, I have given a lot of thought to the governance issues and what we as an industry can do differently. For me it gets back to some basics: Know the customer, know the management team extremely well, and look hard at the complexities of the business. A mentor of mine once told me, "If you can't understand it, don't assume you are stupid and everyone else is smart. Chances are you have some company--they just aren't smart enough to admit it." Our financial analyses must be thorough, and we must be prepared for the speed at which information is provided and needs to be managed. It's all about discipline and focus. We must stay focused on improving our risk management practices and thinking proactively about the risks we deal with every day.

I want to extend my personal congratulations to Bill Perotti on a job well done for RMA. Bill provided extraordinary leadership to our association during the difficult days after September 11. He has been tireless in his pursuit of a strategic plan that ensures we live up to the name Risk Management Association.

RMA is a wonderful organization with hundreds of volunteers who work tirelessly for the benefit of our industry. I look forward to serving as your chair and working closely with you and RMA's professional staff. Thanks, in advance, for your continued support as we expand the services RMA provides.

Sandra Jansky, RMA Chair, 2002-2003