Compliance: Basics of disaster preparedness planning
After weeks of hurricanes, and now wildfires, it’s more important than ever for credit unions to be prepared for disasters. Federally insured credit unions are required to have disaster recovery and business resumption plans to address all types of disruptions.
These disruptions can range from a power outage to a natural disaster physically destroying a credit union’s premises.
Per NCUA, a disaster preparedness program should:
- Be commensurate with the institution’s complexity of operations;
- Minimize interruptions of service to members and maintain member confidence in times of emergency; and
- Be reviewed at least annually, and address changes in the credit union’s operations.
NCUA’s Catastrophic Act Preparedness Guidelines (NCUA’s Part 749, Appendix B) provides recommendations for developing and maintaining a disaster recovery program with the oversight and approval of the board of directors.
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