Risk Management For The Modern Credit Union

Credit unions reeling after the regulatory tsunami and uncertainty in the interest rate market might find comfort in the data, advice, and best practices featured this week on CreditUnions.com.

 
 

Risk-taking is inherent in the credit union business model. So is the need to accommodate new or rapidly changing regulation. The one-two punch of a finicky rate environment — will the Fed raise rates or won't it, and when — coupled with the influx of new rules to follow is enough to make any credit union leader's head spin. But it's not enough to make anyone want to give up. That's why this week, CreditUnions.com is featuring data, advice, and best practices to help credit unions excel when it comes to compliance and risk management.

In Two Roads Crossing, Callahan analyst Janet Lee takes a look at the credit union investment portfolio and compares it against that of banks. Are credit unions well-positioned in the case of a interest rate hike? Find out today.

For a more visual representation of what price risk looks like in the credit union investment portfolio, check out the CreditUnions.com Graphic Of The Week, also compliments of Janet Lee. Click here to view.

Examiners can make things tough for any credit union, especially when they’re with the NCUA, but the relationship doesn’t have to be adversarial. In fact, it often isn’t. Preparation is the cardinal rule for doing well on NCUA examinations, plus it doesn’t hurt to be hospitable.

“Don’t put them in the broom closet while they’re there,” says MJ Coon, executive vice president and chief financial officer at Colorado's Ent Federal Credit Union. “The relationship with our examiners is very important to Ent. I would choose a good relationship over a bad one any day. Who needs the added tension?"

For more tips from Coon and Kim Zelna, director of compliance services at the Pennsylvania Credit Union Association, read How To Ace An NCUA Exam.

Examinations aside, the resources required to stay compliant in today’s regulatory environment are increasing in scope and intensity. Credit unions across the country — such as Oklahoma-based TTCU — have hired chief risk officers and created or beefed up entire departments dedicated to compliance and risk management.

TTCU's chief risk officer, Stephanie Jones, is tasked with compliance and collections. She's been with the credit union since 2002 and before that was an examiner at the NCUA. In this Q&A, Jones discusses her responsibilities at TTCU, how her experience as an NCUA examiner influences her work, and the skills required to succeed as risk officer. Click here to read the Q&A with Stephanie Jones.

Compliance and risk management are no easy task, there is no doubt, but credit unions have plenty of experts out there willing to help them succeed. Two hot topics — cyber security and enterprise risk management — are the focus of this week's Partner Perspectives. Find out what others are saying today.

Happy Reading.

 
 

May 4, 2015


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