Bits And Bites For The Board
NCUA’s new rule on interest rate risk emphasizes board-approved policy and oversight by the board. The board is also responsible for setting strategic direction. With the speed of change the industry has experienced lately, keeping board members apprised of all that’s happening has become more challenging than ever.
Board meetings typically focus on the day-to-day business of the credit union and review of financial results with very little time spent looking forward or learning about industry issues. Why not take a bit of each board meeting and purposefully devote some time to strategic issues and education? While formal board education and planning sessions are crucial, regular discussion on these topics can help keep the board moving in the direction that NCUA requires.
Boards share the ultimate fiduciary responsibility for credit unions and equipping them with the tools they need to make informed decisions is critical. It’s a little bit like sneaking vegetables into the spaghetti sauce, but small, regular doses of education and strategy can go a long way toward healthy boards and credit unions.
