The CEO is the highest-ranking person within the bank’s structure. They are responsible for the bank’s operations and procedures. They also make vital decisions such as changes in work strategy, formulating goals, and setting deadlines. Depending on their professional background and expertise, a CEO can gravitate toward functions like finance and marketing. Although there is no one-size-fits-all formula, a successful CEO demonstrates the following traits: a clear vision, leadership skills, effective communication skills, and a strong passion.
Communicating with All Stakeholders
The CEO, being the face of the bank, should represent the organization in front of the customers, lawmakers, employees, and other key officials. It’s their duty to relay the bank’s vision, mission, and values and implement them. With good planning, a CEO should never be off duty—there should be a set mechanism to answer every query.
Planning and Management
The CEO is responsible for deciding on new product lines or creating and preserving competitive advantages, new markets, and risk management. CEOs rely on considerable data and input from the board of directors and insight from other senior officials, but they are the ones that control operational strategy and execution. A CEO oversees all of the bank’s branches and keeps in touch with the regulatory authorities.
Human Resource Management
To serve the customers and ensure the bank’s business is conducted correctly, the CEOs should promptly assign tasks and follow up. Although many banks have numerous departments with heads of staff, the CEO must supervise all subordinates to ensure all investments on returns are maximized and the bank performs well. A CEO can be a board member or be part of an audit committee that ensures transparency and accountability for every employee.
Reporting on Finances and Data
Today, financial regulations have emphasized data accuracy reported to the public as part of a bank’s financial statements. This is to curb several high-profile financial statement frauds common to some organizations. Board members, the CEO, and management are now held accountable for inaccurate financial statements. Therefore, the CEO should ensure the information provided to shareholders, the board of directors, and customers is correct and compliant with federal regulations.
Safeguarding Legal Interests
Kevin Cohee and other entrepreneurs like him are responsible for safeguarding the legal interests and funds in their banks. In addition, a CEO should mitigate legal risks related to contracts and documentation across the bank’s operations and pursue interests in contracts, such as recovering claims. In conjunction with the chief risk officer, the CEO should implement a risk management framework and limit the bank’s exposure to all risks.
Setting a Vision and Corporate Culture
Corporate culture is the behaviors and beliefs determining how an organization’s employees and management interact and handle business. CEOs like Kevin Cohee ensure that the employees dress and act in a way that fits the bank’s culture.
As the key leader in bank management, a CEO should be a person with high integrity, open-mindedness, and an eagerness to learn. They should also safeguard the bank’s legal interests, plan human resource management, and report on data and finances.