WASHINGTON — No credit union is too small or too large to develop comprehensive risk mitigation strategies, NCUA Vice Chairman Rodney Hood told attendees at NAFCU's Congressional Caucus today.
Hood, who has made that issue one of the top priorities of his tenure on the board, said credit union executives should integrate enterprise risk management into all facets of their operations and not isolate it into one department.
He said that the agency's examiners have been instructed to evaluate not only how well credit unions have managed risk in the past but how well they have put in safeguards for the future. The key elements of a risk management strategy range from keeping business strategies in line with the credit union's risk appetite to linking risk levels to what kinds of returns the credit union is hoping to attain.
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Hood said the goal of the agency "is not to play gotcha but have a collaborative, constructive process."
He praised the performance of credit unions in serving the needs of their members and helping the economy and said, "Credit unions didn't cause problems in the financial markets, but credit unions can play a role in the solution."
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