Thursday, March 22, 2012

NCUA-Risk Focused Exams....

"NCUA Risk-Focused Examinations"

This type of examination centers on seven risk areas and the Board and management's ability to identify, monitor, and control these risks.

Here's the CU Movement's Latest Aggregate Risk Ratings:

             Rating                         Category

          LOW RISK                            Credit Risk - earnings and capital.

          LOW RISK                            Interest Rate Risk - market rate volatility.

          LOW RISK                            Liquidity Risk - funding potential obligations

          LOW RISK                            Transaction Risk - operational missteps.

          LOW RISK                            Compliance Risk - abiding by the law.

          LOW RISK                            Strategic Risk - adapting to change.

          LOW RISK                            Reputation Risk - public confidence.

The credit union movement as a whole is clearly on very, very solid ground in all these risk categories despite taking the full brunt of the worst economic recession in this Country in over 75 years. 

Take a bow and congratulations to all the highly effective Boards and Credit Union staff who have made sure credit unions remained strong.

But there is one other risk category of significant concern and worth monitoring....

              Rating                                  Category

            HIGH RISK                       NCUA Risk - regulatory confidence.

"NCUA-RISK" ...focused exams.

    I just keep getting this sinking feeling ....
How about you? 

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