CUs learn about ERM in NAFCU webcast
Aug. 16, 2013 – Credit unions participating in NAFCU’s webcast this week on enterprise risk management learned about the business and regulatory perspectives on a concept that is built around helping management prevent surprises and guard effectively against risk in all areas of the operation.
Tara Skinner, risk solutions manager for the Americas Risk Practice at SAS Inc., and Tim Segerson, NCUA’s deputy director of examination and insurance, provided Wednesday’s webcast participants with an overview of how ERM is evolving in the marketplace and how this tool can help credit unions – particularly larger ones – protect against the types of risk that are of key concern to NCUA examiners.
Skinner talked about the compatibility of ERM and risk-based capital, noting they combine effectively into what she termed “strategic risk management.” Strategic risk management addresses “strategic decision making as well as the capital set aside for risk and the activities that generate that risk,” she said.
Segerson, drawing on a longstanding understanding of ERM, said this process should help management ensure predictable, manageable outcomes through all areas of the credit union operation.
ERM isn’t a regulatory requirement for natural person credit unions, Segerson said, but its concepts are universal and work for all organizations. Moreover, it is needed in large, expansive organizations and both suitable and adaptable for credit unions having significant exposures.
He prefaced his remarks by noting NCUA’s ongoing effort in “working toward a consistent process in all areas of our examination, but particularly in this [ERM] area, because it is such an important component to a successful business operation.”
The Aug. 14 webcast is archived and will remain available for viewing and purchase for one year.
Aug. 14 webcast, "Enterprise Risk Management: Roadmap and Expectations"