MADISON, Wis. — Based on communication and logistical flaws that surfaced in southeast Texas and elsewhere during Hurricane Ike, credit union managers should be preparing to ensure disaster plans are shipshape.
That was the advice this week in a year-end assessment of disaster planning by CUNA Mutual Group warning CEOs and directors to give more than "lip-service" to the topic or have "only a shell of a plan in place."
"Unfortunately, disasters do not wait and paying attention to disaster planning only when the issue is in the media or regulators bring it to you attention, is too late," declared Michael Retelle, manager of CMG's Property and Casualty Claims unit.
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During Hurricane Ike's September 's devastation of many small communities on the Texas coast including Galveston Island, some CUs were criticized by regulators for failing to have adequate generator power, emergency communication equipment or for failing to give web notice to members on branch closings.
Some, it was said, relied too heavily on peer CUs for backup services.
"Although disaster planning is a topic the NCUA and individual state regulators will continue to emphasize in 2009, it still gets too little attention until a major event occurs," said Retelle. "The lessons from Hurricane Ike demonstrate anew disaster planning was put on a task list, as a topic to be discussed later when more time was available." That philosophy needs to change, he concluded.
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