Human Capital and Risk Assessment Programs Appear Sound, but Evaluations of Their Effectiveness Should Be Improved

GuidanceGovernment Accountability Office (GAO)Risk Management

Why GAO Did This Study

The Federal Deposit Insurance Reform Conforming Amendments Act of 2005 requires GAO to report on the effectiveness of Federal Deposit Insurance Corporation’s (FDIC) organizational structure and internal controls. GAO reviewed (1) mechanisms the board of directors uses to oversee the agency, (2) FDIC’s human capital strategies and how its training initiatives are evaluated, and (3) FDIC’s process for monitoring and assessing risks to the banking industry and the deposit insurance fund, including its oversight and evaluation. To answer these objectives, GAO analyzed FDIC documents, reviewed recommended practices and GAO guidance, conducted interviews with FDIC officials and board members, and conducted site visits to FDIC regional and field offices in three states.

What GAO Recommends

GAO recommends that FDIC (1) develop outcome-based performance measures for key human capital initiatives and make available such performance results to all employees and (2) develop policies and procedures that define how it will systematically and comprehensively evaluate its risk assessment activities.

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