Credit union service organizations expanding their fee-based services to increase revenues must recognize that such expansion also creates increased risk exposure to professional and cyberliability, a CUNA Mutual Group speaker told a National Association of Credit Union Service Organizations Annual Conference breakout session Thursday.
“The current economy has people looking for any reason to sue,” said Jim Hunt, CUNA Mutual Group staff underwriting specialist. “Directors and officers of CUSOs must understand the financial and reputational impact a loss will have on their CUSO.”
Professional liability could arise from neglect or an act, omission, error, breach of duty, misstatement or misleading statement made by directors, officers or employees of a CUSO. “Even a seemingly small, inadvertent error or unintentional oversight can result in costly legal action against your credit union or CUSO,” Hunt said.
Likewise, as CUSOs expand e-commerce activities and become responsible for safeguarding more confidential data, so does the risk of cyberattack, data breaches and viruses. Hunt said types of cyberexposures include: