Exam CRCM topic 1 question 91 discussion

Before taking any further action, it's important to understand why the compliance failure occurred. Reviewing the bank's flood policies and procedures will help identify any gaps or deficiencies that led to the failure to conduct flood hazard area determinations for construction loans. This initial step is essential for addressing the root cause of the compliance issue and developing an effective plan to remedy it. Once the cause is identified, appropriate actions such as conducting a risk assessment, preparing an analysis for bank management, or reviewing loan files can be undertaken as necessary.