One mistake Brian Vannoy has seen financial institutions make time after time during his more than 23 years as a lender: Stretching the credit boundaries when venturing into new territory.

“Whether it’s a new product, a new geographic market, or a new borrow type, it’s important to be disciplined around the credit standards we set, particularly early on,” says Vannoy, who in July was named chief credit risk officer for $1.1 billion asset Allegacy Federal Credit Union in Winston-Salem, N.C.

“Even though it’s hard to be patient when you’ve launched an exciting new venture, the long-term rewards of sticking to your credit standards will be worth the wait,” he says.

Vannoy recently shared his approach to credit risk management with Credit Union Magazine.

CU Mag: What are the biggest credit risk areas facing your CU?

Vannoy: The single biggest credit risk area for our credit union is the area of concentration management.

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