What happens if ***** gets hit by a bus?

Today's podcast episode covers succession planning from a different angle than I've seen in awhile. Immediately when we hear "succession planning" we think about the CEO or the child of some large stockholder or something similar. But let's be honest (if not a little cold-hearted...and for that I apologize)...would your bank continue to operate if the CEO suddenly passed?

Some would not. I can think of one bank in particular that had a very similar situation happen (twice) and it was chaos that resulted in a series of mergers and the loss of a great bank from the industry.

But some would. It's important to realize who actually holds the keys to the kingdom. You must have a CFO or someone that understands how the investments work. What about a key market? Does a branch manager hold all the relationships that make that market a key one?

Is there someone in compliance or loan operations that knows how to make a GFE form dance and sing? (If so...I promise, you're not paying them enough and there are eternal rewards for that individual!). What happens to your consumer lending mechanism if that person is no longer there?

Is there an IT person in your bank that just knows how to fix anything? Problems with the core...call them and it's fixed.

I would venture to say...in most banks...the loss of one of the aforementioned positions would be more impactful to the bank's operations and more difficult to replace at the same knowledge level than a CEO.

That's what today's episode addresses. Succession planning is not just put something on paper and maybe buy key-person life insurance (all good things btw). It's looking at where the main points of friction would occur should the unthinkable happen. Remember...we are risk managers! It is what we do! Are we properly managing that operational risk in our banks...

I thought it was a fair question to ask!

-B