The tradeoff between risk and reward rules all things financial.That's particularly true in credit union boardrooms, where rewardsfor directors, in the form of newrules allowing compensation, are rising in lockstep withliability risks. The trend has incited many boards to get more serious about internal fraud, data breaches,increasingly complex regulatory oversight, rapidly changingtechnology and other serious risks.

“The more consumers become aware of the board's fiduciaryresponsibility, the more they can include board members inlawsuits,” Mitchell Stankovic & Associates CEO Susan Mitchellsaid. “Volunteer boards have a certain perception and are lesslikely to be named as responsible. However, with the trend to payvolunteers, I believe this could change the dynamics.”

These days, the biggest board vulnerabilities are oftenstructural, according to Mitchell and two other industry pros.Mitigating those vulnerabilities could require some fundamentalchanges.