Disaster Plans Test Your Readiness

In October 2012, Hurricane Sandy brought flooding and destruction to credit unions and businesses along the East Coast. And in May tornadoes ripped through Oklahoma, decimating a branch of Tinker Federal Credit Union.

Every credit union faces the risk that a significant weather event, system failure, or unforeseen crisis could disrupt operations.

That’s why credit union regulators require all credit unions to have a disaster response plan to ensure uninterrupted service to members in those instances.

These events also remind all credit union staff of the importance of regularly reviewing and improving your credit union’s plan.

How to prepare 

Your disaster response plan should address the elements NCUA examiners expect when they determine your ability to “PREPARE” for a disruption in service:

* Planning: Ensuring members’ access to financial services;
* Resources: Allocating sufficient equipment, supplies, and facilities;
* Evaluation: Testing contingencies for all critical systems;
* People: Maintaining staff and officials’ readiness;
* Alliances: Establishing relationships with other organizations;
* Review: Updating internal plans to increase effectiveness;
* Experience: Incorporating lessons learned.

All employees should consider how a disaster would affect their roles and convey their concerns and suggestions to management.

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