8 Steps to a Successful Regulatory Exam
The regulatory examination: Few combinations of words are so effective at inspiring a cold sweat in even the most prepared credit union.
Increased regulatory oversight is the new normal in the post-financial crisis age. And along with new rules and regulations comes an increased focus on the methodology employed by institutions. For a credit union just trying to succeed in the business of banking, the increased scrutiny can add up to a lot of extra work. Oh, and by the way, regulators still expect financial institutions to be profitable, too.
Whether you need to update your members, your board or your staff on new policies and procedures, it’s good to start that process well in advance of an exam. Even better, conduct any necessary training ahead of the IT audit. This will give the credit union ample time to ensure everyone is on the same page in terms of policy education and awareness. And if an examiner interviews an employee about a particular procedure, they are more likely to remember it. In fact many examination findings are caused by employee unfamiliarity with existing policies and procedures, not any actual policy deficiencies.
6. Show your work