Strong policies and procedures are like life preservers for credit unions struggling in the turbulence of today’s regulatory climate. Stick by them, and you’ll stay afloat.
Yet, policymaking itself can seem even more overwhelming than the regulatory changes that make it necessary. This is particularly true for smaller credit unions that lack the resources or dedicated compliance personnel.
For that reason, many credit unions will choose to utilize sample policies from trusted sources, such as regulatory consultants or fellow credit unions.
However, there are certain steps that must not be skipped when tailoring existing policies to fit your credit union.
Follow these 10 simple steps to give your policymaking program the greatest chance for success.
1. Cross every ‘T’
|Jami Weems is the senior compliance officer for PolicyWorks.|
If you’re using a sample policy, take the time to scan the document for things like the credit union’s name, location, and other information specific to the credit union.
It sounds like a no-brainer, but when overwhelmed staff are rushed, these kinds of mistakes can happen.
Nothing signals a lack of commitment to compliance more than a policy manual filled with the wrong credit union’s name.
2. Don’t name names
Particularly when it comes to policies, credit unions can get tripped up by examiners who come across the name of a former employee in what’s supposed to be a current document.
Whenever possible, stick to job titles or functions when drafting and updating your policies.
3. Call the meeting to order
After going to all the hard work of policymaking, credit unions can easily overlook a last necessary step—board approval.
Be sure to send any new or updated policy by your board of directors for a vote.
4. Spread the word
After you’ve finalized your policies (and received board approval), you have to implement them. A key component of doing so is communicating the policies and procedures to staff.
Make them accessible on a shared network or create printed copies for integral personnel. That’s what examiners want to see.
5. Show, don’t tell
Making policies available to staff is one thing. Truly educating them on an individual basis is quite another.
Management must ensure that new or updated policies are understood by the personnel responsible for implementing them and that there are no lingering or unspoken concerns with the changes.
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