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.
Recommendations for Executive Action
|Federal Deposit Insurance Corporation||To ensure that it can measure the contribution that key human capital initiatives make toward achieving agency goals, FDIC should take steps to identify meaningful, outcome-based performance measures to include in its training and development scorecard and communicate available performance results to all FDIC employees.|
|Federal Deposit Insurance Corporation||To strengthen the oversight of its risk assessment activities, FDIC should develop policies and procedures clearly defining how it will systematically evaluate and monitor its risk assessment activities and ensure that required evaluations are conducted in a comprehensive and routine fashion.|