Credit Union Exam Solutions Presents With Flying Colors Risk Appetite and Risk Management Framework
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Jun 17, 2025 Join Steve Farr and Todd Miller, both seasoned veterans from the NCUA and now part of Mark Treichel's team, as they delve into the nuances of risk appetite and management frameworks. They discuss the lack of guidance from regulators, provide insights on FDIC's proposed rules, and the essential components of risk management frameworks. Learn about the vital role of a strong risk culture and how it can make or break credit unions, alongside anecdotes that connect risk management principles to celebrated coaching methodologies. A must-listen for credit union professionals!
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Culture is Risk Management Foundation
- A strong risk management culture set by the board and management is the crucial foundation.
- Without it, no amount of policies or structure below will effectively control risk.
Document and Communicate Risk Appetite
- Develop a clear, documented risk appetite that aligns with your business plan and is communicated throughout.
- Use metrics and reporting systems to measure and monitor risk against appetite consistently.
Taxi Credit Union Concentration Risks
- Taxi credit unions faced massive concentration risk with medallion loans weighing heavily on their capital.
- Despite high capital ratios, the unforeseen drop in medallion value devastated these credit unions.