Are Your Sales Practices Too Risky?

These days, sales practices and incentive compensation programs at large and mid-sized banks are under a regulatory microscope. Marketers from across the industry are asking whether cross-selling is dead. It’s not. But you have to know how to do it right—and how to maintain a culture that makes it easy for employees to do the right thing. That will require some self-examination.

Marketing plays a key role here, one that requires close collaboration with your compliance team. And even though it’s the bigger banks that are currently on the hot seat, ABA is recommending that banks of all sizes assess and manage the risks posed by their sales practices and incentive compensation programs.

ABA has launched a new Sales Practice and Incentive Compensation Risk Assessment Matrix to help.

Developed by ABA’s Center for Regulatory Compliance staff—and reviewed by compliance experts at banks of varying sizes—the matrix provides:

  • A detailed list of questions bank managers and directors can use to evaluate a bank’s inherent risk
  • A checklist for evaluating the controls in place to manage or mitigate that risk
  • A summary section that shows the level of risk left after applying controls

The matrix is scalable and formatted as a Word document to allow banks to fill out and customize as needed.

The document is available for free download by ABA member institutions and their employees.


Learn more and download the matrix.