Minneapolis, MN, 30th June 2024, ZEX PR WIRE, Element Financial Advisory proudly announces the addition of Mike Pocrnich to their team as Finance Manager. With over two decades of experience in non-profit accounting, auditing, and financial analysis, Pocrnich’s extensive background and dedication to financial accuracy and strategic leadership will significantly enhance the firm’s service offerings.

Mike Pocrnich, a Minneapolis local, holds a BA in Accounting from St. John’s University and is proficient in various ERP and CRM software, including the Microsoft suite. His career began at CliftonLarsonAllen as a Senior Auditor, where he managed non-profit audits, enhanced internal controls, and trained junior staff. Pocrnich’s expertise in financial forecasting and reporting has been a cornerstone of his career.

In his current role at Element Financial Advisory, Pocrnich offers CFO and Controller services to a diverse client portfolio, including government and non-profit organizations. He is skilled in developing financial forecasts and adept at managing the intricacies of state and federal grant administration. His prior role as Controller at Beltz, Kes, Darling & Associates (now BerganKDV) saw him leading annual audits and engaging in financial client assistance.

Pocrnich’s professional expertise extends to staff management and client relations, underscored by a noted ability to communicate complex financial information effectively. His day-to-day duties encompass the oversight of accounts payable, payroll, and ensuring financial compliance. His long-standing application of accounting principles, including GAAP, FASB, and GASB, reflects his commitment to precision and strategic financial management.

“Mike’s extensive experience and unique skill set are tremendous assets to our team,” said John Smith, CEO of Element Financial Advisory. “His proven track record in financial forecasting, grant administration, and client relations aligns perfectly with our mission to provide top-tier financial advisory services. We are thrilled to welcome Mike to our team and look forward to the impact he will make.”

Sustainability Takes Center Stage: Integrating ESG Considerations

Environmental, social, and governance (ESG) considerations are increasing for both businesses and consumers. Financial institutions are actively integrating ESG factors into their investment strategies and product offerings.

• Sustainable investment options: The growing demand for sustainable investment options is prompting financial institutions to offer green bonds, ESG-focused mutual funds, and other products that align with environmental and social responsibility goals.

• Climate-risk management: As the impact of climate change becomes more evident, financial institutions are incorporating climate-related risks into their risk management strategies. This includes conducting scenario analysis and developing mitigation strategies to ensure long-term sustainability.

• Socially responsible practices: Beyond environmental considerations, supporting social good is also becoming a priority. This can involve investing in underserved communities, promoting diversity and inclusion within the workforce, and supporting initiatives that address social issues.

The Blurring Lines: The Rise of New Players and Collaboration

The financial services landscape is no longer the sole domain of traditional institutions. New players, including fintech startups and big tech companies, are disrupting the industry with innovative offerings and agile business models.

• Collaboration and competition: Traditional institutions are increasingly collaborating with fintech startups to gain access to cutting-edge technology and expertise. At the same time, they are actively competing with these newcomers by launching their digital offerings and adopting agile development approaches.

• Open banking: Open banking APIs enable seamless data sharing and foster partnerships between traditional institutions and fintech companies, enhancing the customer experience and driving innovation.

2024 presents both challenges and opportunities for the financial services industry. By embracing customer-centricity, innovative technologies, and responsible practices while navigating the regulatory landscape, businesses can adapt and thrive in this ever-changing environment.

With over twenty years of experience, Pocrnich provides crucial insights to help organizations navigate the evolving regulatory landscape.

Anticipating Increased Regulatory Attention in 2024

The regulatory environment for financial institutions in the U.S. remains challenging as we move through 2024. Bank executives and directors must focus on several critical issues to meet rising supervisory expectations and ensure sound risk management. By anticipating developments in key areas, organizations can stay ahead of examination priorities, identify potential gaps, and demonstrate a commitment to regulatory compliance.

Key Areas of Regulatory Focus

Liquidity Risk Management and Interest Rate Risk

Financial institutions face renewed challenges in managing liquidity and interest rate risks. The competitive landscape pressures institutions to increase deposit rates amid sluggish loan growth, resulting in razor-thin margins. The federal financial institution regulators’ addendum to the “Interagency Policy Statement on Funding and Liquidity Risk Management,” issued in July 2023, emphasizes the need for contingency funding plans. Examiners will closely monitor institutions’ approaches to fortifying liquidity positions and managing interest rate risk, with a focus on testing and confirming access to contingency funding sources.

Third-Party Risk Management

As financial institutions navigate the increasingly complex regulatory landscape, the spotlight remains firmly on third-party risk management. Updated guidance raises the bar for organizations to maintain robust and mature risk management programs throughout the entire lifecycle of third-party relationships. Historical milestones, such as the 2013 guidance from the OCC and the Federal Reserve, have evolved to address fintech partnerships and banking-as-a-service relationships. The 2023 interagency guidance necessitates an assessment of third-party relationships’ alignment with strategic goals and compliance with applicable laws and regulations.

Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) Compliance

The refined focus on BSA and AML compliance unveils an environment shaped by ongoing investigations and heightened regulatory scrutiny. Financial institutions must continually enhance their systems and programs to combat the growing sophistication of financial crimes and money laundering schemes. The integration of artificial intelligence (AI) into financial systems adds complexity to compliance programs, with regulators closely monitoring AI’s impact on AML efforts. Staying ahead in BSA and AML compliance is not only a regulatory requirement but a proactive risk management measure.

Cybersecurity

Cybersecurity remains a critical joint effort among regulatory agencies. Financial institutions must invest in advanced security solutions, conduct regular penetration testing, and provide comprehensive employee training. The evolving complexity of cybersecurity risk requires a nuanced understanding of each institution’s threat response capabilities. The OCC’s updated Cyber Supervision Work Program emphasizes the importance of multi-factor authentication, robust systems configurations, patch management, and effective incident response.

Operational Resilience

Ensuring operational resilience is crucial for financial institutions in today’s volatile environment. Regulatory scrutiny will focus on institutions’ ability to withstand and recover from disruptions, whether from cyber incidents, natural disasters, or other operational challenges. This includes assessing the effectiveness of business continuity plans and disaster recovery strategies. The Federal Deposit Insurance Corp.’s proposed enhanced corporate governance standards would substantially raise the bar for banks with more than $10 billion in assets if finalized.

Crypto and Digital Asset Regulation

The regulatory landscape regarding crypto and digital assets remains cloudy following market disruptions from early 2023 and ongoing legislative activities. Financial institutions must balance innovation with the need for financial safeguards. Regulators seek to strike this balance through various legislative proposals, aiming to bring clarity, investor protection, and oversight to the rapidly expanding market of crypto and digital assets.

Navigating the Regulatory Landscape with Expertise

“In challenging financial regulatory environments, we are here to help,” said Mike Pocrnich. “Our team at Element Financial Advisory provides nuanced guidance and expertise to help financial institutions navigate these complexities effectively. By adopting a proactive stance and focusing on key areas, organizations can meet rising supervisory expectations and demonstrate a commitment to sound risk management.”

About Mike Pocrnich

Mike Pocrnich brings over twenty years of dedicated experience in non-profit accounting, auditing, and financial analysis. A Minneapolis local, Pocrnich holds a BA in Accounting from St. John’s University and is proficient in various ERP and CRM software, including the Microsoft suite. His career began at CliftonLarsonAllen as a Senior Auditor, and he currently serves as Finance Manager at Element Financial Advisory, where he provides CFO and Controller services to a diverse client portfolio, including government and non-profit organizations.

About Element Financial Advisory
Element Financial Advisory is a leading financial services firm based in Minneapolis, offering comprehensive CFO and Controller services to government entities, non-profit organizations, and businesses of all sizes. Our team of seasoned professionals is dedicated to providing personalized financial solutions that drive success and sustainability.

For more information about Mike Pocrnich and Element Financial Advisory, please visit www.elementfinancial.com.