Standard: Understands business’s responsibility to know, abide by, and enforce laws and regulations that affect business operations and transactions
Performance Element: Understand government regulations pertaining to the finance industry to protect the company wellbeing.
Performance Indicators:
Discuss legal considerations in the finance industry (BL:133) (SP)
Discuss the effect of tax laws and regulations on financial transactions (BL:134) (SP)
Performance Element: Implement compliance measures in banking to adhere to regulatory requirements.
Performance Indicators:
Discuss e-compliance issues in banking services (BL:091) (SP)
Discuss federal regulation of lending functions (BL:092) (SP)
Discuss federal regulation of operations functions in banking services (BL:093) (SP)
Discuss the responsibilities of regulatory agencies that oversee the banking industry (BL:094) (SP)
Comply with banking regulations (BL:146) (SP)
Describe the process for implementing regulatory changes (BL:095) (MN)
Describe provisions of bankruptcy law (BL:096) (MN)
Performance Element: Acquire a foundational knowledge of compliance to understand its nature and scope.
Performance Indicators:
Discuss the nature and scope of compliance in the finance industry (BL:148) (SP)
Describe the use of technology in compliance (BL:149) (SP)
Performance Element: Develop a compliance program to protect the company wellbeing.
Performance Indicators:
Develop policies/procedures to comply with regulatory requirements and self-regulatory guidelines (BL:150) (MN)
Explain the elements of a compliance program (BL:130) (MN)
Discuss functional areas of a compliance audit (BL:131) (MN)
Develop a compliance program (BL:132) (MN)
Measure compliance program effectiveness (BL:147) (MN)
Standard: Understands the techniques and strategies used to foster positive, ongoing relationships with customers
Performance Element: Foster positive relationships with customers to enhance company image.
Performance Indicators:
Discuss the importance of meeting and exceeding customer expectations (CR:015) (CS)
Recommend bank solutions to meet client needs (CR:031) (CS)
Assist a customer in the opening of an account (CR:032) (CS)
Describe the relationships that institutions providing banking services have with their communities (CR:020) (SP)
Interpret loan terms for a client (CR:033) (SP)
Performance Element: Understand characteristics, motivations, and behaviors of clients in finance to facilitate client interaction.
Performance Indicators:
Explain the responsibilities of finance professionals in providing client services (CR:012) (CS)
Performance Element: Utilize technology to facilitate customer relationship management.
Performance Indicators:
Use Customer Relationship Management (CRM) technology (CR:024) (SP)
Standard: Understands tools, strategies, and systems used to maintain, monitor, control, and plan the use of financial resources
Performance Element: Understand the fundamental principles of money needed to make financial exchanges.
Performance Indicators:
Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.) (FI:058) (PQ)
Explain the time value of money (FI:062) (CS)
Explain the purposes and importance of credit (FI:002, LAP-FI-002) (CS)
Explain legal responsibilities associated with consumer financial products and services (FI:063) (CS)
Performance Element: Manage personal finances to achieve financial goals.
Performance Indicators:
Calculate the cost of credit (FI:782) (CS)
Validate credit history (FI:072) (CS)
Performance Element: Understand the use of financial-services providers to aid in financial-goal achievement.
Performance Indicators:
Describe types of financial-services providers (FI:075) (CS)
Performance Element: Understand financial markets to recognize their importance in business.
Performance Indicators:
Discuss the nature of convergence/consolidation in the finance industry (FI:573) (SP)
Describe the relationship between economic conditions and financial markets (FI:574) (SP)
Performance Element: Manage financial resources to ensure solvency.
Performance Indicators:
Calculate the time value of money (FI:238) (SP)
Performance Element: Implement suitable internal accounting controls to ensure the proper recording of financial transactions.
Performance Indicators:
Explain the purpose of internal accounting controls (FI:343, LAP-FI-343) (SP)
Determine the components of internal accounting control procedures for a business (FI:479) (SP)
Performance Element: Utilize financial formulas to aid in the growth and stability of banking services.
Performance Indicators:
Explain key ratios/terms in banking (FI:543) (SP)
Compute key banking calculations (e.g., interest, annual percentage rate, exchange rates) (FI:544) (SP)
Explain the CAMELS rating system (i.e. Capital adequacy, Asset quality, Management administration, Earnings, Liquidity, and Sensitivity to market risk) (FI:545) (MN)
Performance Element: Manage a profitable investment portfolio to aid in the achievement of organizational goals.
Performance Indicators:
Describe the nature of bank investment portfolios (FI:608) (SP)
Explain economic and marketplace factors impacting bank portfolio quality (FI:609) (SP)
Discuss restrictions (e.g., regulatory, accounting) on a bank’s investment portfolio (FI:610) (MN)
Select customers for portfolios using established criteria (FI:611) (MN)
Manage bank investment portfolios (FI:612) (MN)
Evaluate investment portfolio performance (FI:613) (MN)
Develop portfolio strategies that support the institution’s business goals (FI:614) (MN)
Performance Element: Assess company performance to enhance bank profitability.
Performance Indicators:
Explain strategies that are often used to maximize bank profitability (FI:490) (MN)
Assess the profitability of individual product lines (FI:615) (MN)
Assess the adequacy of bank loan loss reserve (FI:616) (MN)
Determine optimal capital levels (FI:617) (MN)
Describe methods used to analyze bank financial performance (FI:618) (MN)
Analyze overall bank financial performance (FI:619) (MN)
Performance Element: Conduct an internal audit to verify the integrity of a banking institution’s internal controls, liabilities, assets, and operations.
Performance Indicators:
Explain aspects of a banking institution’s internal audit (FI:620) (MN)
Conduct an internal audit of a banking institution (FI:621) (MN)
Develop an internal audit plan for a banking institution (FI:622) (MN)
Performance Element: Manage financial risks to protect a business’s financial well-being.
Performance Indicators:
Assess fraud risk associated with monetary instruments (FI:654) (MN)
Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate information to assist business decision-making
Performance Element: Acquire fundamental knowledge of banking technology to increase workplace efficiency and effectiveness.
Performance Indicators:
Discuss the impact of technology on the banking industry (NF:117) (CS)
Utilize coin and currency equipment (e.g., bill strapping machines, coin/currency counters, counterfeit detectors, etc.) (NF:201) (CS)
Fill/empty ATMs (Automatic Teller Machines) (NF:116) (CS)
Use check-processing tools/technology (e.g., endorsers, encoders, joggers, scanners, strippers, etc.) (NF:202) (CS)
Demonstrate proper use of banking security tools/technology (e.g., remote drive-up equipment, safe deposit boxes, vaults, alarm systems, etc.) (NF:203) (SP)
Standard: Understands the processes and systems implemented to monitor, plan, and control the day-to-day activities required for continued business functioning
Performance Element: Acquire knowledge of bank security programs to minimize chance for loss.
Performance Indicators:
Discuss procedures for the secure handling of cash (OP:217) (CS)
Discuss the secure handling of checks (OP:218) (CS)
Explain procedures for detecting and reporting counterfeit currency (OP:219) (CS)
Describe crimes to which a bank could fall victim (e.g., fraud, robbery, phishing) (OP:220) (CS)
Discuss the elements and role of a bank security program (OP:221) (SP)
Describe the nature of business continuity plans (OP:222) (MN)
Performance Element: Perform daily banking activities to process monetary instruments.
Performance Indicators:
Process damaged and/or mutilated currency and coin (OP:271) (CS)
Order and deposit currency/coin (OP:272) (CS)
Deposit checks (OP:273) (CS)
Handle differences in cash received/deposited (OP:274) (SP)
Identify requirements for transporting cash (OP:275) (SP)
Process transactions in negotiable monetary instruments (e.g., money orders, travelers checks, cashier checks, bearer bonds) (OP:446) (SP)
Discuss the role of the Federal Reserve system in banking operations (OP:276) (SP)
Performance Element: Underwrite loan applications to determine creditworthiness of customers.
Performance Indicators:
Describe the loan application generating process (OP:277) (SP)
Explain the process of credit analysis (OP:278) (SP)
Describe factors affecting loan pricing and loan structuring (OP:279) (SP)
Underwrite a loan application (OP:280) (SP)
Performance Element: Acquire knowledge of problem loan management to protect the institution’s financial wellbeing.
Performance Indicators:
Discuss the nature of problem loan management (OP:283) (SP)
Handle problem loans (OP:284) (MN)
Performance Element: Understand real estate lending to service bank loans and mortgages.
Performance Indicators:
Discuss the involvement of financial institutions in the real estate industry (OP:186) (SP)
Explain approaches to real estate lending (OP:281) (SP)
Discuss the nature of the secondary mortgage market (OP:363) (SP)
Describe the functions and responsibilities of the loan servicing department (OP:282) (SP)
Performance Element: Apply knowledge of trust activities to fulfill the fiduciary obligations of a banking institution.
Performance Indicators:
Describe trust department policies and procedures (OP:364) (SP)
Discuss the administrative duties associated with trusts (OP:365) (SP)
Explain the estate planning process (OP:366) (SP)
Manage receipts and payments for a trust (OP:368) (SP)
Develop an estate plan for clients (OP:367) (MN)
Identify factors to consider prior to making discretionary distributions from a trust (OP:369) (MN)
Establish trusts for clients (OP:370) (MN)
Performance Element: Manage operational risks to protect a business’s financial well-being.
Performance Indicators:
Identify the factors that contribute to operational risk (e.g., insufficient training, lack of supervision, inadequate security, poor system design, poor HR policies) (OP:447) (SP)
Discuss the nature of operational risk management (OP:448) (SP)
Standard: Understands concepts, tools, and strategies used to explore, obtain, and develop in a business career
Performance Element: Understand careers in banking services to determine which role and responsibilities best match personal abilities and traits.
Performance Indicators:
Explain career opportunities in banking services (PD:285) (SP)
Performance Element: Explore career-advancement activities in banking services to enhance professional development.
Performance Indicators:
Discuss professional designations for banking professionals (PD:286) (SP)
Describe the services of professional organizations in banking services (PD:287) (SP)
Performance Element: Acquire knowledge of banking processes and services to facilitate workplace activities.
Performance Indicators:
Describe the nature of retail/business banking processes (PD:204) (CS)
Describe types of personal banking products and services (PD:154) (CS)
Describe types of banking products and services provided exclusively to businesses (PD:423) (CS)
Describe basic teller performance standards (PD:207) (CS)
Describe the importance of selling in the banking industry (PD:298) (CS)
Discuss the nature of loan products (PD:155) (SP)
Describe trust services available to customers (PD:208) (SP)
Describe international services available to customers (PD:299) (SP)
Cross-sell banking products and services (PD:300) (SP)
Performance Element: Acquire knowledge of the banking industry to understand the environment in which its services are offered.
Performance Indicators:
Discuss ethical issues in the banking industry (PD:192) (SP)
Explain the evolution of commercial banking (PD:191) (SP)
Discuss the fiduciary role of banks (PD:193) (MN)
Describe bank policies that pertain to fiduciary activities (PD:194) (MN)
Performance Element: Understand types of banking institutions to be aware of their roles in providing banking services.
Performance Indicators:
Describe types of banking institutions (e.g., central banks, retail banks, universal banks) (PD:288) (SP)
Describe the nature of the national banking system (PD:195) (SP)
Discuss the role of credit unions (PD:200) (SP)
Explain the role of savings and loan associations (PD:201) (SP)
Discuss the nature and scope of investment banking (PD:198) (MN)
Discuss the role of the World Bank Group in international financial assistance (PD:202) (MN)
Explain the nature of government agencies that provide financing to businesses (e.g., Export-Import Bank of the United States, Small Business Administration, etc.) (PD:203) (MN)
Standard: Understands tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate financial information to assist business decision-making
Performance Element: Acquire foundational knowledge of financial-information management to understand its scope and nature.
Performance Indicators:
Explain the nature and scope of the financial-information management function (FM:002) (SP)
Explain the role of ethics in financial-information management (FM:003) (SP)
Performance Element: Utilize financial information technology tools to manage financial information and perform work responsibilities.
Performance Indicators:
Describe the use of technology in the financial-information management function (FM:011) (SP)
Demonstrate financial analysis applications (FM:014) (SP)
Performance Element: Acquire foundational knowledge of financial information analysis to aid in financial decision-making.
Performance Indicators:
Describe techniques used to analyze customer financial information (FM:009) (SP)
Standard: Understands risk-management strategies and techniques used to minimize business loss
Performance Element: Acquire a foundational understanding of risk management to demonstrate knowledge of its nature and scope.
Performance Indicators:
Explain the role of ethics in risk management (RM:041, LAP-RM-041) (SP)
Describe the use of technology in risk management (RM:042) (SP)
Discuss legal considerations affecting risk management (RM:043) (SP)
Performance Element: Explore risk control to understand its relationship to risk management.
Performance Indicators:
Discuss the nature of risk control (i.e., internal and external) (RM:058) (SP)
Describe the importance of auditing risk control (RM:060) (MN)
Discuss risk control systems (RM:061) (MN)
Performance Element: Manage risk to protect a business’s well-being.
Performance Indicators:
Discuss the nature of global risk (RM:065) (SP)
Monitor third-party relationships for potential risk (RM:066) (SP)
Discuss the nature of enterprise risk management (ERM) (RM:062) (SP)
Discuss the nature of credit risk management (RM:064) (MN)
Discuss the relationship between risk and business objectives (RM:044) (MN)
Identify business risks (RM:056) (MN)
Explain ways to assess risk (RM:059) (MN)
Develop a risk management program (RM:045) (MN)
Evaluate a risk management program (RM:046) (MN)
Discuss reasons to integrate risk management into business operations (RM:055) (MN)
Assess enterprise risk (RM:067) (MN)
Integrate risk management into business operations (RM:057) (MN)
Coordinate contingency planning (RM:068) (MN)
Evaluate contingency planning (RM:069) (MN)
Performance Element: Use risk management techniques to minimize the chance of bank failure.
Performance Indicators:
Explain the nature of interest rate risk (RM:050) (MN)
Measure interest rate risk (RM:070) (MN)
Manage interest rate risk (RM:051) (MN)
Describe factors impacting liquidity risk (RM:071) (MN)
Evaluate liquidity risk (RM:072) (MN)
Manage liquidity risk (RM:073) (MN)