5 Lessons From Hurricane Sandy’s Aftermath
To understand what the aftermath of a disaster like Hurricane Sandy can do to a credit union look no further than the $1.8 billion Municipal Credit Union. In the difficult days following the superstorm, MCU members became increasingly frustrated and furious, sharply criticizing the New York credit union for what they said were serious lapses and missteps in its disaster recovery efforts.
While Hurricane Sandy had a major impact on many credit union operations throughout New York’s tri-state area, knocking out power to millions and leaving behind unthinkable devastation, disaster recovery experts said the MCU experience is a case study that highlights five major lessons that credit unions should learn from and avoid.
MCU blamed its inability to process direct deposits because it did not receive payroll data files from agencies in the city of New York before the superstorm knocked out power. While the power was out, MCU said it was working around the clock to manually process the payroll information to post on members’ accounts.
The three most important services all credit unions must have in a disaster recovery plan is to absolutely, positively have backup technology that will ensure the credit union’s email, phone and website keep working.
When 9/11 devastated lower Manhattan – the business and government center of New York City where MCU has its headquarters – many businesses decided to move their disaster recovery hot sites hundreds of miles away.
Frustrated over not getting enough information about what was happening with their credit union, some MCU members searched on Google and found the cutimes.com articles.