Credit union handbook risk and compliance

What are the biggest risks facing credit unions?
Top 10 Challenges Facing Credit Unions
1. Digital & AI Transformation.
2. Regulatory Compliance
3. Cybersecurity Threats
4. Competing with Larger Banks and Fintechs
5. Membership Growth & Awareness
6. Aging Membership
7. Talent Acquisition and Retention
8. Expanding Services
What are the biggest risks facing credit unions?
Credit unions manage their exposure to risk through a comprehensive compliance program, often referred to as a CMS.
The following components are essential to a comprehensive CMS: Governance.
Policies and Procedures..
What is a compliance risk in banking?
Compliance risk management is the process of identifying, assessing and mitigating potential losses that may arise from an organization's noncompliance with laws, regulations, standards, and both internal and external policies and procedures..
What is risk management in credit union?
Compliance risk, which is often overlooked as it blends into operational risk and transaction processing, is the risk to earnings or capital arising from violations of, or non-conformance with, laws, rules & regulations, code of conduct, customer relationship rules or ethical standards..
What is risk management in credit union?
Credit unions manage their exposure to risk through a comprehensive compliance program, often referred to as a CMS.
The following components are essential to a comprehensive CMS: Governance.
Policies and Procedures..
Credit risk is a lender's potential for financial loss to a creditor, or the risk that the creditor will default on a loan.
Lenders consider several factors when assessing a borrower's risk, including their income, debt, and repayment history.
What is compliance risk in banks? “Compliance risk” refers to the risk of regulatory sanctions, financial loss, or damage to reputation that may arise from a bank's failure to comply with laws, regulations, and industry standards related to that sector.

Jan 3, 2016(2) A credit union shall develop, implement, document and maintain a risk management system with such governance arrangements and systems and

Jan 3, 2016Risks within a credit union's risk management system should be managed and mitigated to ensure that they are consistent with the credit union's

Complete MLA Compliance Guide

A helpful compliance reference for credit unions that addresses many key areas of the DoD's MLA Rule including credit cards, security interests and calculating the MAPR. (Member-only) Download Guide

Compliance 101 Manual

This member-only e-manual provides links to useful resources such as guidance documents, and tips for excelling in key job functions for credit union compliance officers like compliance risk management, compliance research and writing skills.
Learn more

Compliance Ad Guide

Creating compliant advertisements that communicate a credit union’s products and services in a way that appeals to consumers can be challenging.
To help credit unions, NAFCU’s Regulatory Compliance team developed this resource for navigating the complex federal regulatory framework that applies to advertising products like share accounts and consum.

Compliance Roadmap Manual

The Roadmap is a must-have, electronic resource designed to assist credit unions professionals as they navigate a complex regulatory environment.
Learn more

How does reputation risk affect a credit union?

Reputation risk may increase when the credit union incurs fines and penalties or receives decreased member confidence as a result of failure to comply with consumer compliance regulations.
Strategicrisk occurs when the board of directors fails to perform necessary due diligence in developing a compliance management system.

What is a credit union risk management system?

credit union’s risk management system should include:

policies

processes and controls that provide adequate

timely and continuous identification

assessment

measurement

monitoring

management and reporting of risks that the credit union is

or might reasonably be exposed to

through its current activities and the external environment.

What is a credit union risk-focused approach?

The agency’s risk-focused approach evaluates how a credit union’s management identifies, measures, monitors and manages existing and potential risks.
A credit union’s board of directors and management, compliance officers, or other employees responsible for fair lending compliance can use this guide as a reference to comply with fair lending rules.

What is Credit Union compliance risk?

Compliance risk can occur when the credit union fails to implement a satisfactory compliance management system.
Reputation risk may increase when the credit union incurs fines and penalties or receives decreased member confidence as a result of failure to comply with consumer compliance regulations.