This week, CreditUnions.com looks at the benefits of a remote CEO, revenue drivers, an ERM committee, and more.
Here are five don’t-miss data points for the week:
8 Hours
During Hurricane Harvey, area flooding and road closures made Old Ocean Federal Credit Union physically inaccessible to staff and members. Despite the inclement weather and resulting operational complications, the CEO of this Gulf Coast credit union, Terry Settle, maintained uninterrupted access to critical systems, coordinated with key vendors, and communicated with staff, members, and the NCUA.
This built-in disaster recovery back-up is just one of the benefits Old Ocean has discovered in its distinct staffing model one in which Settle runs the credit union from his home office in Wichita Falls, TX located an 8-hour drive away.
In The Benefits Of A Remote CEO, Settle talks about the benefits and drawbacks of serving as a remote CEO, the range of opportunities the model has presented, and the similarities with the models of larger credit unions.
$1.5 Million
Purdue Federal Credit Union is using rate swaps and hedging to simultaneously damper interest rate risk and generate revenue.
Purdue Federal began interest rate swaps shortly after the NCUA granted the credit union derivative-trading approval in December 2015. Since then, the strategy has generated approximately $1.5 million in extra interest income from the loans Purdue Federal has been able to hold rather than sell.
To learn more about this strategy, check out 2 Ways An Indiana Credit Union Builds Revenue. ContentMiddleAd
15
When ORNL Federal Credit Union promoted Lisa Thompson to vice president of ERM in 2016, the cooperative effectively centralized enterprise risk under a single individual. To ensure a holistic approach to identifying and assessing risk, one of Thompson’s first tasks was to establish a formal ERM committee.
Fifteen employees representing each of the organization’s business lines comprise the ERM committee. Vice presidents and assistant vice presidents typically sit on the committee; however, if the position doesn’t exist within a specific line, a manager-level position fills in.
To learn more, read 3 Facts About The ERM Committee At ORNL.
360-Degree
After frustrations with traditional approaches to big data and trying to gain a 360-degree, understandable, actionable view of each member OneAZ Credit Union re-engineered its whole data storage and analysis process using what it calls an analytical data utility (ADU).
Rather than using an Enterprise Data Warehouse, the credit union is now using an Enterprise Data Lake.
To find out what the credit union means by data lake, and how it provides a more comprehensive view of member relationships, check out This Method To Capture Member Data Isn’t All Wet.
Billions
The images of flooding, devastated landscapes, and people who have lost everything from hurricanes Harvey, Irma, and Maria fill the airwaves.
Loss of life and property damage in the billions continue to mount. One credit union economist has stated that Harvey’s destruction in Texas (before Irma) could cause losses to the NCUA.
However, there is an unfortunate human tendency to believe dystopian forecasts: Negativity makes one sound like an expert, as the saying goes. If the past is still prologue, the NCUA does not need to keep credit union bailout money.
Read more: Pre-Funding Hypothetical Future Losses: A Lesson From Hurricane Katrina.
Happy Reading!
