September 18, 2014

1. September 18, 2014 RMA Chapter Board Orientation Call

2. Welcome • Thank you for volunteering on the local chapter board! • Purpose of today’s session • Today’s speakers

3. Who is RMA? Mission: RMA is a member-driven professional association whose sole purpose is to advance sound risk principles in the financial services industry.  RMA helps our members use sound risk principles to improve institutional performance and financial stability, and enhance the risk competency of individuals through information, education, peer sharing, and networking.

4. Mission/ purpose of a chapter RMA Chapters: • Serve local members and are the face of RMA to many of our members. Provide added value in local markets. • Provide networking and peer sharing opportunities. • Help retain and generate new memberships. • Help provide education in local markets. Successful Chapters: • Survey members regularly and meet demands. • Create affinity groups to serve all RMA members. • Have a strong and committed board.

5. What chapters offer Add member value in local markets through: • General membership meetings. • Networking events • Educational events: RMA open enrollments and chapter developed training. • Round tables • Affinity group meetings (ERM, Op Risk, Compliance, YP, WIB, etc.) • CRC study groups/ info sessions. • Regional conferences • Other programs: scholarships, charity events, university.

6. Institutional Membership • Banks, thrifts, investment banks, insurance companies, regulatory and supervisory authorities, government and quasi-government entities. • Canadian credit unions, but not U.S. credit unions. • Dues based on the total assets of the institution.

7. Individual Memberships

8. Individual Memberships (cont.)

9. Chapter Resources

10. Highlights 115 Chapters in North America Includes 5 in Canada Served by 5 Regional Managers Chapter categories: small, medium, large, regional, or start up. • Regional chapters: • Oversee multiple local chapters (like a holding company). • Provide support to the local chapters • 4 regional chapters in the U.S. • International chapters: • Australia • Singapore • Hong Kong

11. Chapter Resources

12. Regional Managers Central Region: Jamie Jones, 941-366-302 jjones@rmahq.org Northeast Region: Sandy Sutermaster, 412-787-5625 ssutermaster@rmahq.org Southeast Region: Laura Ridner, 843-225-4690 lridner@rmahq.org Southern Region: Cindee Munro, 623-266-2344 cmunro@rmahq.org Western Region: Erin Jester, 559-326-7444 ejester@rmahq.org

13. Chapter rating

14. Chapter Planning Guide MANDATORY DEADLINES • August 15 - Board Roster Due • August 31 - Conduct a Planning Meeting and Submit Draft • January 15 - File Taxes • March 15 - Conduct Mid-Year Review • April 30 - Submit Cosponsored Educational Planner • August 15 - Submit Final Planning Guide to RM

15. Reaching for Platinum for Success • Meet minimum General Membership and Educational Offerings • Experience a net positive growth in individual membership • Successfully hold Open Enrollments as at least half of your Educational Offerings • Establish and maintain two separate affinity groups • Participate in all HQ calls (Orientation, Regional, Audio Chat and YP) • Have a signed Chapter Affiliation Agreement on File

16. chapter resources • Regional Manager and HQ Support • Chapter Planning Guide • RMA website • Online registration • Reports • Cosponsored educational classes • Templates • RMA’s Handbook for Chapter Board Members • Awards and recognition

17. Chapter Resources CHAPTER LEADERS CONFERENCE • Our way of saying thank you! • Provides chapter officers with networking opportunities and tools to enhance their leadership skills and to help them run successful chapters. • RMA covers registration and hotel stay (2 nights) for up to three chapter officers. • Mark your calendars! Scottsdale, AZ June 18-19

18. Your role as a board member • Support RMA and its mission. • Contribute to the planning and execution of activities of the chapter. • Help recruit new members. • Ensure adequate financial resources. • Protect assets and provide proper financial oversight. • Build a competent board and plan for succession. • Ensure legal and ethical integrity. • Attend all or as many board meetings as possible. • Act as a liaison between your institution and your chapter – communicate the needs of your institution to help the chapter develop appropriate events. Communicate chapter events back to your institution and encourage attendance.

19. Chapter Affiliation Agreements Background • RMA operated in an informal way with its Chapters during most of its 100-year history. • Nonprofit organizations, such as RMA, often allowed third parties to use their trademarks – such as their logos – without much control.  • This was not a major problem years ago when nonprofits were less aggressive in disputing trademarks and had charitable missions that made courts more tolerant. • Best Practice: for a nonprofit to license its trademarks to its Chapters and to include specific controls in order that the nonprofit can police its marks to make sure that its Chapters are using the marks correctly. • See Wall Street Journal cover story, August 5, 2010. • Under the Chapter Affiliation agreement, RMA grants to each Chapter a : • limited, • revocable, • non-exclusive, • non-transferable, • non--assignable license To use • the name “The Risk Management Association,” • the acronym “RMA,” • the RMA logo for official Chapter-related purposes consistent with RMA’s Mission.

20. British Columbia Alberta Manitoba Quebec Sask. Nova Scotia Ontario ME WA AK MT ND VT MN NH OR MA WI ID NY RI SD MI WY CT PA NJ IA OH NV NE IL DE IN WVA MD UT VA CO MO CA KY KS NC TN OK SC Central Region – 20 signed Northeast Region - 11 signed Southeast Region – 24 signed Southern Region – 12 signed Western Region – 21 signed AR NM AZ AL MS GA TX LA FL Chapters & Community Banks

21. Chapter Bylaws and incorporation • Chapter Bylaws • Review annually • Chapters should conduct business following the bylaws and update the document when changes are being made • Model set of bylaws and detailed explanation available from Regional Manager • Chapter Incorporation • 501(c)6 • Personal protection

22. Finance, Tax Compliance, Insurance Chapter Officer Responsibilities Finance and Internal Controls • Develop a basic set of financial controls and reporting requirements • Manage and approve expenses; track funds received • Reconcile bank statements • Prepare financial reports for review by the Chapter Board (on a regular basis) • Develop a storage plan for chapter documents that can be easily transferred from one set of officers to the next • Be sure to have an audit committee to review the books annually

23. Finance, Tax Compliance, Insurance Chapter Officer Responsibilities Tax Requirements • Every chapter is REQUIRED to file a tax return with the IRS on an ANNUAL basis • Form 990 Return of Organization Exempt From Income Tax • Chapters with gross receipts less than $50,000are required to electronically file form 990-N • All tax returns or electronicfilings are due each January 15th (based on an August 31st fiscal year) • There are failure to file penalties of up to $10,000 (actual penalties are based on the level of chapter gross receipts) • IRS will revoke tax-exempt status of any chapter that fails to meet its annual filing requirement for three consecutive years

24. Finance, Tax Compliance, Insurance Chapter Officer Responsibilities Insurance Recommendations • Each chapter should determine whether it has appropriate insurance coverage • Ensure that your treasury, your chapter members, and yourselves are properly protected • Chapters are NOT covered by RMA headquarters insurance policies for your local activities, meetings, events, etc. • Consider purchasing commercial general liability insurance with a minimum of $1M coverage •  As chapter officers & board members, please be sure to protect yourselves as well • You assume a degree of liability for the decisions you make or should have made • Consider purchasing Directors & Officers insurance coverage with a minimum of $1M coverage

25. Chapter board orientation meeting • Chapter Planning Guide Check List Item • Orient new board members to RMA and your chapter • Agenda Items • RMA Mission – Who is RMA? • Chapter board structure and succession plan • Board Meetings – How many and when held? • Who does the chapter serve? • Events – How many? – What type? – Signature Events? • RMA Resources

26. Chapter board orientation meeting • Resources • Handbook for Chapter Board Members • Materials from Chapter Board Orientation Audioconference • Board Orientation Guide • Regional Manager

27. Q&A

28. THANK YOU!