Focus on these seven risks
Jon Heath, senior financial consultant for Fiserv’s Wisdom suite of financial management and accounting solutions, cites seven risks credit unions should focus on:
1. Interest-rate risk: Changes in market interest rates that could adversely affect a credit union’s capital and earnings.
2. Liquidity risk: Risks arising from a credit union’s ability to meet its obligations when they come due.
3. Credit risk: Risks arising from an obligor’s failure to meet terms of any contract with the credit union, or otherwise perform as agreed.
4. Transaction risk: Risks arising from fraud or error that result in an inability to deliver products or services, maintain a competitive position, and manage information.
5. Compliance risk: Risks arising from violations of or nonconformance with laws, rules, regulations, prescribed practices, internal policies and procedures, or ethical standards.
6. Strategic risk: Risks arising from adverse business decisions, improper implementation of decisions, or lack of responsiveness to industry changes.
7. Reputation risk: Risks arising from negative public opinion or perception.
As millennials emerge in the workplace, CU leaders modify their management approach and expectations.