Search: "business models"

Appropriately Managing Risks to Net Worth

Many risks are present in credit union structures and business models today. Interest rate risk, liquidity risk, credit risk, compliance risk, regulatory risk, business risk, fraud risk—the list can go on and on. Increasing regulatory pressure to ensure that all risks are understood and quantified heightens the stakes for all involved in the risk management […]

Sources of Revenue…Something to Consider

Many credit unions are examining their business models and dissecting their membership in several ways. One example is by age group. The objective is to understand where business is coming from to help ascertain the age groups that contribute the most to the cooperative. Often the focus is on loans and deposits. However, a key […]

Planning For PLL

Given the economic experience of the past couple of years, many credit unions were forced to beef up their loan loss reserves.  Now, as things appear to be getting better, we are seeing that some credit unions feel they are “overfunded” and are not adding to their reserves.  While this may provide some temporary relief […]

10 Reasons Things Went Wrong… Has Anything Really Changed?

For years, we have been emphasizing a list of 10 reasons (not in order of priority) risks are not appropriately managed in the financial services industry.  Many of these reasons contributed to the volatile economic environment we find ourselves in today. Mindset—We can take action when bad things happen so things will never be as […]

Lacking Consumer Confidence and Lending

In spite of recent signs that the economy may be turning around—including a 0.3% increase in real consumer spending in January to the highest level since May 2008—consumers still don’t seem to be buying a strong recovery.  February’s present situation index, which serves as an indication of how consumers are feeling with regard to the […]

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