Now is a good time to prepare for a recession
Thinking about how your credit union would weather an economic storm is helpful, whether the turndown arrives now or later.
The news is full of predictions that a recession is coming. The truth is that a recession is always coming–eventually. Whether you believe it’s imminent or more distant, it’s important to think through how your institution might weather the storm, and whether adjustments should be made to prepare for a tougher economic reality.
Visualize
Planning for uncertainty is best done as a team so a variety of views are tapped. Rather than going straight to the numbers, paint a picture of the recession to get everyone engaged. Create a story to help people visualize what could happen, so they can contribute in a meaningful way. Your story could start with describing what will trigger the next recession and include the effects on local employers and the local economy. Describe how different groups of members would be affected and how their behaviors would change as a result.
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