Is your CU ready if disaster should strike?
Sept. 3, 2013 – September is disaster preparedness month and the current issue of The Federal Credit Union – NAFCU’s bimonthly magazine – gives a solid rundown of what credit unions need to be aware of and how to prepare for a potential disaster.
While credit unions are required to have a business continuity plan – disaster plan – that aims to answer all the what-if scenarios that could happen, the TFCU article titled “In Case of Emergency,” stated that having simply a plan that meets the basic requirements isn’t good enough.
Margaret Littman, author of the article, said every disaster preparedness plan should include the following:
- A way to secure and protect your employees,
- A way to secure and protect your property, and
- A way to secure and protect your operations.
She said every credit union should have a disaster preparedness team that includes at least one person from senior management and one from each “practice area of the credit union.” A 2011 NAFCU survey showed that 95.7 percent of businesses test their continuity plan once a year; while 4.3 percent test twice a year. Among those responding to the survey, nearly one-third (32.1 percent) have used the plan.
Littman said the more the plan is practiced, the more the staff will be onboard and this is one of the criteria the NCUA looks for in a disaster preparedness plan.
The Federal Credit Union Magazine
NAFCU's Economic & CU Monitor
"In Case of Emergency" by Margaret Littman, TFCU September/October 2013 issue