Protect Your Credit Union with Effective Supervisory Committee Practices

By Ron Parker

In my 30 years as partner of Clifton Gunderson, LLP, now the largest provider of audit and credit union services in the country, I’ve worked with organizations of all sizes. I’ve witnessed how important supervisory committees are to the health of a credit union, as well as seen the best practices helping supervisory committees be as effective as possible.

Every supervisory committee is unique. What you do as a committee for a $10 million credit union is certainly different than for a $10 billion credit union. However, whether you’re a new or seasoned committee member, the following best practices are a good foundation for a successful supervisory committee.

First, gain a solid understanding of what the regulatory requirements for your position as a committee member are. What do the regulations say you and your committee must do?

Second, as a committee, become familiar with the risk of loss at your credit union. The seven areas of risk regulators focus on in their examinations are a good starting point: credit, interest rate, liquidity, transaction, compliance, strategy and reputation.

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