The world is changing but one thing remains true: consumers recognize credit unions as trusted financial partners, through good times and bad.
We can’t put this well-earned trust at risk. If your credit union’s operational risk management plan is not keeping up with the changing world and the increasing expectations from consumers who depend on us, will you be prepared for the outcome?
Credit union risk staff play a critical role in identifying and preparing credit unions for the dangers, hazards, and potential disasters that may interfere with their organization’s operations. The risks that could erode that trust we have worked so hard to earn.
The opportunity in the risk
Bank failures and cybersecurity threats are happening, while natural disasters are increasing. We may be facing the prospect of another recession. Things are happening all around us that are outside of our control. There are opportunities to take back that control.
Michael Cannes, senior director, enterprise risk management & strategy at Rochdale said at a 2022 conference, “The central objective of enterprise risk management (ERM) is to improve the capability and coordination of risk while integrating the output to provide a unified and holistic picture of risk for stakeholders and decision makers.”
Organizations use different tools and functions to identify, manage, and assess these risks. An ERM plan can help establish a structure and process to identify both risks and opportunities.
“ERM increases confidence and capabilities around understanding and managing the risks of today, while better positioning the organization to leverage opportunities in the future,” Cannes said.
Today, the National Credit Union Administration’s Rules and Regulations Section 704.21 requires corporate credit unions to develop and follow an ERM policy. Natural person credit unions may not be required to develop a formal ERM policy but should still have sound practices sufficient to manage risk.
To leverage opportunities for the future, go beyond just checking a regulatory box. An ERM plan can, and should, be a strategic approach allowing credit unions to think holistically about how ERM can be applied across their entire organization.
If you're going to check one box, check this one
Credit union leaders will be descending upon San Antonio May 7 – 9 to attend Enterprise Risk Management Certification School. These leaders are taking an important step to deepen their understanding of how to balance organization risk with revenue-building interests, gain a higher-level understanding of enterprise risk management, and take the opportunity to earn their Credit Union Enterprise Risk Management Expert (CUERME) designation.
You don’t have to manage ERM alone. There are thousands of credit union leaders around the country facing the same challenges and opportunities when it comes to risk management as you are. Join these important conversations about ERM and dive into topics like:
- the psychology of risk
- the evolution of risk management
- how your current risk management can drive results and value
- how to evaluate and align your credit union’s risk appetite with your strategic pillars
- understand the latest updates on federal, state, and local laws and regulations.
Don’t risk missing out on this opportunity. Registration is still open.
