Management Quality Assurance

Kent Sorey, Ph.D., CFA

**** ****** ***** **, ******** Oaks, CA 91320

714-***-**** **********@*******.***

Risk / Finance / Audit Director

. Developed budget and resource requirements

. Tested accuracy of financial planning and budgeting processes

. Assessed comprehensiveness and accuracy of business lines' risk

self-assessments

. For capital markets, reviewed accounting and position

reconciliations and postings

. Implemented and managed financial forecasting and stress testing

models

. Developed key risk indicators for lines of business

. Prepared and presented Quarterly Enterprise Risk Assessment to

senior executives and Board

. Coordinated coverage and SOX testing with internal and external

stakeholders

. Established monthly meetings with business control functions

within each business

. Conducted new product readiness reviews

. Established mentoring program to accelerate talent development of

staff

CAREER HISTORY

Federal Reserve Bank of San Francisco 2012 - 2013

Market Risk Coordinator

. Contracted to conduct analysis of governance, policies, and practices of

model development, implementation and validation of models in production

as part of the first ever model risk exam of Wells Fargo.

. Conducted extensive research and interviews with model developers, users,

and validators as well as governance executives and responsible internal

audit managers as part of the resident exam team, in conjunction with the

quantitative model exam group and the OCC.

. As part of the first ever exam of first lien mortgages at Wells Fargo,

conducted analysis to determine:

o the accuracy of stress loss forecasting,

o the impact of loan modifications on the forecasts,

o the roles/responsibilities and reporting functions of risk management

groups including corporate credit risk, internal audit, QC, and

embedded risk managers in the LOBs, and

o the impact of the first lien mortgage portfolios on capital, reserves,

ACL, loss mitigation and loss recognition as part of the resident exam

team, in conjunction with the quantitative model exam group.

. Conducted analysis of deposit modeling, duration gap calculations, funds

transfer pricing, Basel 2.5, Market Risk Rule, recovery and resolution

planning, and treasury risk appetite as part of and asset/liability exam

of Wells Fargo with the OCC as part of the FRB resident exam team.

Analyzed compliance with federal guidelines for audit departments.

Bank of America, Calabasas, CA 2003 - 2011

Audit Director

. Responsible for audit coverage of capital markets (front/back office),

credit risk, manufacturing quality, consumer behavior modeling, portfolio

management, product pricing, interest rate hedging, asset securitization,

and margin management.

. Developed monthly key risk indicators with business lines and quarterly

enterprise risk assessment for senior management and Board.

. Developed automated continuous auditing programs and root cause analysis

of all audit issues to identify common themes and potential control risks

across all business lines.

. Expanded remediation of audit issue to include preventative as well as

detective controls and testing for scalability and sustainability.

. Tested compliance with both origination regulations (Regs X, Z, CC, B, C)

and loan modification requirements (HAMP, HARP, 2MP).

Bank of America Achievements included:

Field work and analysis directly impacted controls and performance within

ERM framework:

. Reduced variability of collateral dependent charge offs by 38% in the

mortgage portfolio through tiering by loan size and fixing waterfall of

methodologies of appraisals, broker price opinions and automated valuation

models.

. Reduced mortgage loan origination errors by 42% by instituting manual

preventative controls over automated underwriting systems.

. Identified key behavioral assumptions in loss forecasting process, and

revision of those assumptions which produced a 43% improvement in

accuracy.

. Identified data quality issues and developed sensitivity testing to

measure impact on default projections.

. Identified new reporting controls that increased referrals of suspicious

activities from 50/month to 75/day and ensured proper flows to both fraud

prevention and global anti-money laundering teams with data reconciliation

routines and feedback loops.

. Improved scoping of audits by including all stakeholders in strategic

brainstorming sessions.

. Introduced thematic analysis of all audit issues to identify potential

common control challenges in all business segments.

. Worked with line businesses to establish pre-delivery quality assurance

standards with thresholds triggering audit analysis which resulted in

improved procedures and system requirements.

Developed imminent default model to anticipate borrower stress, reduced new

delinquencies by 36%: Identification of behaviors stressed customers had

in common enabled preventative program modifications and reduced losses to

both customer and firm.

Successfully promoted six members of team to positions of greater

responsibility: Through personal coaching, targeted training, and weekly

roundtables to share challenges, several team members were selected for

higher positions and placed in charge of critical continuous audits and

those with significant regulatory impact.

Established quarterly reviews with combined regulatory agencies to better

anticipate their focus and reduce conflicting requirements: Developed risk

management reporting systems on an end to end basis, and combined stress

tests with Value at Risk measures to anticipate regulatory capital

requirements. Reporting systems included credit, prepayment, and interest

rate risk measurements, scenario forecasts of exposure and changes in

product lines, portfolios, and capital required to control the exposures.

WesCorp Federal Credit Union, San Dimas, CA 2002 - 2003

Director of Derivatives Hedging

. Assessed exposures to twists and shifts in yield curve and designed

hedging program to cover convexity and well as interest rate risk.

. Ensured stress testing results met risk appetite of Board.

. Met with CFOs and Boards to set up interest rate swap programs to reduce

interest rate risk of member credit unions.

. Developed asset/liability management systems for members.

US Dept. of Treasury, Office of Thrift Supervision, Santa Ana, CA 1990 -

2002

Sr. Financial Analyst

. Supported supervision of banks from $100M to $11B.

. Coverage included investment portfolios, treasury functions, product line

profitability, capital planning, asset/liability management, interest rate

hedging programs, and financial reporting systems.

. Developed quarterly variance analysis reports, competitor analyses, and

made presentations to banks' Boards of Directors.

Farwest Savings Bank, Newport Beach, CA 1988 - 1990

Asset/Liability Manager

. Prepared strategic plan, managed a $30M budget, and the overall interest

rate risk of the bank's $4.5 billion balance sheet.

. Measured interest rate sensitivity, restructured Treasury & mortgage

backed securities portfolios, adjusted incremental pricing of

asset/liabilities, and designed hedging strategies.

. Analyzed bond sector values, portfolio risks, yield curve analysis, and

interest rate outlook.

Pacific Savings Bank, Costa Mesa, CA 1985 - 1988

Assistant Treasurer

. Managed $100M liquidity portfolio and overall cash flow and cash

forecasting.

. Managed asset/liability function.

. Developed pricing model for adjustable rate mortgages.

. Recommended 401k investments mangers and programs.

. Prepared interest rate & economic outlook.

. Conducted weekly oral presentations to investment committee.

Vice President, Portfolio Management, Analytic Investment Management

1983 - 1985

. Managed $120 million of public and private pension assets using covered

call equity based strategies.

. Prepared and presented quarterly performance report to pension oversight

boards.

Earlier:

Senior Financial Analyst, Bechtel Power Corporation

Senior Financial Analyst; Claremont Economics Institute

Senior Economist and Model Developer, Chase Econometrics

Senior Financial Analyst, Central Intelligence Agency

Security Analyst, Transamerica Investment Management.

EDUCATION, DESIGNATIONS AND CERTIFICATIONS

Six-Sigma Green Belt, Bank of America

Charter Financial Analyst, Association of Investment Management

PhD. Economics, cum laude; B.A. Economics, cum laude; University of

California, Irvine.

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