<p>1. Establishing Organizational Planning Guidelines;</p> <p>a.</p> <p>Depending on the size and complexity of the credit union, create a work group representing all areas of business.</p> <p>b.</p> <p>Identify critical systems and services, taking into account member usage.</p> <p>2. Completing a Business Impact Analysis;</p> <p>a.</p> <p>Consider:</p> <p>1) The critical system or service;</p> <p>2) Type of failure events;</p> <p>3) Minimum acceptable service levels or system output;</p> <p>4) The probability of occurrence;</p> <p>5) The probable timing of the occurrence; and</p> <p>6) The cost, duration, and impact of each failure.</p> <p>3.</p> <p>Developing detailed Contingency Plans;</p> <p>a.</p> <p>Evaluate the options and select the most cost-effective, practical, and appropriate strategy for the size and complexity of the credit union. The primary goal should be to maximize the functionality and speed of recovery and minimize cost.</p> <p>b.</p> <p>Focus on the impact of disruption.</p> <p>4.</p> <p>Designing a Validation method; and</p> <p>a.</p> <p>Test the plan test at least annually to determine if the credit union could recover to an acceptable level of business within the timeframe stated in the contingency plans.</p> <p>b.</p> <p>Maintain documentation.</p> <p>5.</p> <p>Communicating the plans.</p> <p>a.</p> <p>Notification should include regulators, employees, members, business partners, third party vendors, bonding companies, news media, law enforcement, and other outside parties about the disruption and the impact on operations. "In order to be prepared for a disaster, credit unions must have plans so they know what to do when disaster strikes.Each credit union must assess its own risks and develop strategies accordingly," the letter read. "Credit unions should seek guidance from a wide range of sources when developing the details of their plans, including other credit unions, trade associations, industry periodicals, bonding companies, resources on the Internet, consultants, seminars, etc. There is no time like the present to prepare for the unknown." [email protected]</p>

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.