NCUA Inspector General: Lack of vendor authority puts billions at risk
NCUA inspector general renews call for Congress to give NCUA oversight powers
The National Credit Union Administration’s inability to oversee credit union third-party vendors leaves billions of dollars at risk, agency Inspector General James Hagen said last week.
“Without this authority, the NCUA cannot accurately assess the actual risk present in the credit union system or determine if the risk-mitigation strategies of credit union service organizations and third-party vendors, which provide much of the industry’s information technology infrastructure, are adequate and can effectively protect the system from potential attacks,” Hagen wrote, in a letter to the NCUA board, outlining the agency’s top management and performance challenges.
“In determining whether to identify an issue as a challenge, we consider its significance in relation to the NCUA’s mission, its susceptibility to fraud, waste, or abuse, and the NCUA’s progress in addressing the challenge,” Hagen wrote.
Under federal law, agency Inspectors General are required to issue top management and performance issues each year.
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