Bank Boards of Directors: Governance and Oversight Measures to Mitigate Risks Under Evolving Regulatory Frameworks
Navigating Bank Failures, Climate Change, Cybersecurity, Data Privacy and Access to Banking and Credit
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Banking and Finance
- event Date
Tuesday, February 20, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will offer guidance to bank counsel on critical areas of risk that impact U.S. banks--bank failures, climate change, cybersecurity, and social justice--and steps the bank boards they advise should take to address the evolving regulatory framework around these issues.
Ms. Friedlander is a partner in Sullivan & Cromwell’s Criminal Defense and Investigations Group and co-head of its Cybersecurity Practice. She represents clients in complex internal investigations, regulatory enforcement proceedings and criminal matters involving every aspect of white-collar crime, including fraud, FCPA, insider trading, theft of trade secrets, money laundering and tax matters. Ms. Friedlander also advises major corporations and Boards of Directors in cybersecurity planning and incident response. She currently serves as co-chair of the New York Chapter of the Women’s White Collar Defense Association and as a member of the New York City Bar Association’s White Collar Crime Committee. Ms. Friedlander has been ranked by Chambers USA 2021 for White-Collar Crime & Government Investigations, where sources praised her “impress[ive] facility and judgment,” her ability to “quietly command[] the room with her skilled preparation,” and her standout trial skills (“She is so good in court.”).
Mr. Treviño is the co-head of the firm’s corporate governance practice, the managing partner of its executive compensation group, and a founding member of its financial institutions group. He is a recognized leader in structuring and counseling senior executives and boards in significant matters involving reputation, overlapping regulatory regimes, fiduciary conflicts and multiple jurisdictions, with a particular emphasis on matters involving financial institutions. Mr. Treviño teaches Corporate Crisis Management at the Yale Law School and is a co-author of The Public Company Deskbook, which has been hailed as “the bible for securities lawyers” by Fortune. For over twenty years Mr. Treviño has represented prominent institutions and individuals in their most public and challenging transactions. He also lectures and writes extensively, and is often quoted with respect to corporate governance and compensation matters, including for the American Bar Association, Bank Directors Magazine, The Corporate Counsel, The Corporate Governance Advisor, Society of Corporate Secretaries and Governance Professionals and Wall Street Journal. Mr. Treviño is also on the Advisory Board for the Harvard Law School Program on Corporate Governance.
Mr. Weiner is a partner in Sullivan & Cromwell’s Financial Services and Capital Markets groups. His practice involves bank regulatory matters, including capital, liquidity, stress testing and resolution planning, and a broad range of transactions, including registered and unregistered securities offerings, other capital markets transactions, and public and private mergers and acquisitions. He also advises corporate clients on ongoing public company matters, including disclosure and corporate governance.
The risks facing banks and their governing boards are constantly evolving. Current issues demanding particular attention include bank failures, climate change, cybersecurity, data privacy, and equitable access to banking services and credit. Counsel must have a thorough understanding of the current regulatory environment and potential legal risks facing financial institutions in these areas and provide advice to bank boards on governance and oversight measures to mitigate these risks.
There is continued focus on the risks that climate change poses to the financial system. Bank boards should stay current on climate-related financial risks by periodically assessing their climate risk exposure, estimating potential losses that could result from various climate-related scenarios, and maintaining a framework for public disclosure and reporting of climate risks affecting the bank.
Although many banks have made large investments in cybersecurity and data protection, banks must continue to maintain and improve their cybersecurity systems to address any potential new threats to their systems in the event of a cyberattack. Regulators are increasingly focused on technology risk management and new guidance and regulations continue to evolve. Directors must assess their incident response procedures and have systems in place for evaluation of third-party service providers and notification of security incidents that could affect the bank.
Social justice has gained increasing attention in the banking sector. Regulators have signaled renewed focus on equitable access to banking services, consumer protection, and discriminatory lending. Bank boards should examine and adjust their customer-facing procedures accordingly.
Listen as our authoritative panel discusses current risks of particular concern for banks and provides tips for counsel who advise boards of directors on steps needed to mitigate those risks.
- Current banking risks for bank boards: legal and regulatory
- Climate change: risk management, disclosure
- Cybersecurity: current and emerging risks and issues in focus for regulators
- Consumer protection, equal access to banking services, anti-discrimination initiatives
The panel will review these and other critical questions:
- How should banks go about assessing the financial risks associated with climate change?
- How are banks mitigating the risks of cyberattacks in light of the increased use of online and mobile app banking?
- What kinds of cybersecurity protocols should a board put in place for third-party service providers?
- What steps should banks be taking to protect themselves, and what disclosure controls should be in place to respond to a cyber incident?
- What are the potential legal and regulatory consequences of discriminatory banking practices?
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