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Attendees at the first day of NAFCU's Risk Management Seminar in Denver included discussions about NCUA expectations relating to risk management, enterprise risk management theory and a case study of how to implement an ERM program.

Conference attendees also filled out NAFCU's Credit Union Risk Survey, the results of which will be discussed on Wednesday.

The conference, which is new this year, began Monday at the Grand Hyatt Denver and runs through Aug. 5; it is open to all credit union professionals.

On Monday, NCUA Office of Examination and Insurance Director Larry Fazio discussed the second categories of risk which agency examiners focus on, as well as the agency's recommendations for making risk assessments. Fazio said NCUA's main expectations are compliance and safe and sound practices, but noted "the devil is in the details." He also said NCUA's supervisory priorities in 2015 are interest rate risk, cybersecurity, the Bank Security Act and Truth in Lending Act/Real Estate Settlement Procedures Act, internal controls, and new products and changes in strategy.

Attendees at the Risk Management Seminar discussed enterprise risk management programs and examinations on Monday. (Photo: Gary Caskey)

The focus on NCUA continued with a presentation from NCUA Region 4 Director C. Keith Morton on what examiners are looking for regarding risk management.

NAFCU Director of Regulatory Affairs Alicia Nealon gave a presentation on how other regulators, including CFPB, the Financial Crimes Enforcement Network and FDIC, are evaluating risk preparedness and how their perspectives should influence credit unions' safety and soundness plans.

Also on Monday, PenFed Credit Union Senior Vice President of ERM Angela Patel, as well as other representatives from PenFed, discussed ERM theory and practice and how their ERM program had been implemented.

Today's program at the conference includes discussions of risk assessment tools, examinations and audits, and third-party vendor management.

The conference's complete schedule is online at www.nafcu.org/riskagenda/, and updates are posted on NAFCU's Twitter handle, @NAFCU, with the hashtag #NAFCURiskSeminar.