Remove the Mystery from Enterprise Risk Management
A Compliance and Examination Perspective
We often look at Enterprise Risk Management (ERM) as a risk mitigation or avoidance process, but it is really establishing the right balance of risk given a specific fact set and risk mitigants to maximize performance over the long run.
Recent National Credit Union Administration (NCUA) supervisory letter guidance has emphasized the importance of every credit union having "sound processes sufficient to manage the risk associated with their business model and strategies". What does this mean for your credit union? Make no mistake, risk is the pivotal element of credit union operations and remains the central focus of the current examination program. Risk is simply the possibility that an event will occur and negatively affect the achievement of your credit union's objectives. A credit union is primarily responsible for recognizing risk and reacting appropriately, while also ensuring the needs of the members are served in a difficult business environment. Yet in our current environment, no phrase has been so often used and, yet, misunderstood as "enterprise risk management".
ERM is a process implemented by an institution's board of directors, management and staff and applied at a high level across the enterprise. It is designed to identify potential events that may affect the credit union, and to manage risk to be within your "risk appetite" to provide reasonable assurance of achieving your objectives, and to optimize value and performance within your organization. Is it the "Holy Grail" of risk management or simply the combination of your existing compliance programs?
Hear from Rochdale Group Managing Member Tony Ferris about the enterprise risk management environment and NCUA Deputy Director of Examination and Insurance, Tim Segerson, and credit union attorney David Reed, as they offer technical guidance and practical tips in this vital operational area.
In this session, you will learn the details of a high level, credit union wide risk management program and to identify significant strategic issues that are important for your credit union to successfully integrate into its risk management program.
This webinar is in partnership with The Rochdale Group Inc.
During this webinar, you will:
- Learn the fundamentals of enterprise risk management
- Review the seven major risks, credit to transactional
- Understand your risk profile
- Discuss risk-based examinations
- Review steps to developing an ERM approach at your credit union and establishing the right balance of risk
- Discuss the NCUA Letter to Credit Unions including the basic components of an ERM program
- Increased clarity of NCUA expectations on risk management
- A credit union perspective from David Reed
- ERM case study from CUNA and The Rochdale Group
- CUNA attendance log
For more information on ERM resources and upcoming schools, visit cuna.org/erm.
Who Should Attend
This hot topic webinar is designed for credit union senior management, compliance, lending, finance and internal audit staff. Affiliation with CUNA/League is required for attendance.