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CU Snapshot

 Apr '18Mar '18
# of CUs5,7245,727
Total Assets
($ billions)
Total Savings
($ billions)
Net Cap.
Loans to Savings82.9%81.5%
Loan Delinq.0.8%0.8%

         Credit Union Indicators

Manage Risk for Competitive Advantage

Are you leveraging your audit/supervisory function?

Too often, credit unions fail to leverage their audit/supervisory function, which could otherwise deliver significant value and contribute to a competitive advantage, according to Tony Ferris, managing partner for The Rochdale Group, a CUNA strategic partner.

"Change is afoot, though," Ferris says. "Regulators, internal stakeholders, and customers are scrutinizing executives, boards, and auditors to provide greater insight and assurance around risk, fraud, compliance, and governance."

That pressure has produced an evolutionary change to how organizations approach governance, risk, and compliance, as well as enterprise risk management models. Credit unions should address the new, dynamic environment by:

Success within these efforts requires interdisciplinary collaboration between the board, management, and the audit/supervisory roles, Ferris says.

"The more integration and functionality between these bodies, the greater the assurance of efficiency in your organization," he says. "This is no small feat. Ingrained roles, distrust, lack of support, and limited expertise create barriers that you must overcome.

"But the return on your efforts is worthy," Ferris continues. "A great deal of research proves organizations that master these processes perform significantly better than their peers."

For more about managing risk, read the feature article "Manage Risk Proactively" in the January issue of Credit Union Magazine.