While there are multiple viewpoints on the federal credit union industry's new efforts for directors to smarten up as mandated by the NCUA rule on director financial literacy, an upshot opportunity presents itself in the form of enhanced governance by directors.

The issue of improved and effective governance is hard to argue against. The NCUA financial literacy requirement for directors to have at least a working familiarity with basic finance and accounting practices, including the ability to read and understand a credit union's balance sheet and income statement and to be able to ask substantive questions of management and auditors, seems pretty basic after one year of its promulgation. We have come too far from the 1920s, '30s and '40s when a mom-and-pop style of oversight worked for many credit unions. A director position on the board as a reward or recognition for service from a select employee group member met most credit union's operational needs for governance.

The complexity of our 21st century financial industry requires knowledge, not just of balance sheets, but of risk-management tolerances, operating and personnel policies, records and disaster recovery plans, investments, borrowing, insurance and emerging technologies, just to name several areas. Volunteer directors with expertise, experience and willingness to continue learning will help meet obligations of their board duties.