Musings from the CU Suite

Written by Anthony Demangone

NCUA recently issued a letter to credit unions that highlights its regulatory focus for 2013.  

Where will NCUA focus?

1. Operational risk, specifically looking at technology and internal controls.
2. Balance sheet management, zeroing in on interest rate risk, liquidity risk, concentration risk, and the use of new products and services.
3. Clarity, for both examiners and credit unions.  Look for guidance related to MBLs, TDRs and credit rating. 
4. Exam Consistency.  NCUA will work to improve the communication process between the agency and credit unions. 

In some shops, such regulatory texts are pushed to compliance officers and internal auditors.  I'd argue that such documents are "must reads" for everyone on your leadership team.  Here's why:

• No one employee has a perfect understanding of a particular workplace.  You may think you know about your IT procedures.  Or internal controls.  But someone else may have a better understanding.  Sharing information like this is a much better way to flag potential issues. 
• Compliance and the exam process should be a team effort.  
• It is a good reminder that we are a regulated community.  There are rules, and they should be followed. 

I often talk about leadership skills, such as communication, emotional intelligence, and the like.  But sometimes, you simply have to roll up your sleeves, read, and learn.  Leadership skills are great, but without a solid knowledge of the rules of the game, you'll just spin your wheels.

Have a great weekend, guys.

Related posts:

• 7 Compliance Rules for Non-Compliance Managers.