CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Reed: Be a ‘flashing light’ for members
Compliance

Reed: Be a ‘flashing light’ for members

Evaluate real-world examples to identify potential negative situations.

December 10, 2019
No Comments
David Reed

Charged with safeguarding members’ assets and ensuring the credit union is operating in a safe and sound manner, the supervisory committee’s role is to be a watchdog and ensure no threats are lurking that could negatively impact the credit union.

“The supervisory committee is the flashlight for the member,” says attorney David Reed of Reed and Jolly, PLLC. “The CEO is the brains, the board is the heart, but the supervisory committee is the eyes and ears.”

Reed broke down the expectations for supervisory committees during a keynote address for 370 attendees at the 2019 CUNA Supervisory Committee and Internal Audit Conference in Las Vegas.

There has been a dramatic change in the regulatory environment, technology, service delivery, member expectations, and business models in recent years and all of those have implications on credit union operations.

Internal fraud remains the biggest threat, Reed says, because the individuals who carry out these activities are employed by the credit union, know how the institution operates, and have the ability to carry out any cover-ups that prevent the fraud from being detected.

Reed suggests supervisory committee members pay attention when a financial institution is in the news for a negative event—such as a lawsuit, embezzlement, robbery, internal dispute, or data breach—and use these stories as sources of information for what could potentially happen at their credit union.

 “When you look at how some of these frauds are discovered, it will help sharpen your own view,” Reed says.

In the course of their exams, NCUA examiners make sure credit unions are compliant with the applicable laws, regulations, and federal directives, and also initiate corrective actions when necessary, but Reed says the supervisory committee can play a critical in these exams.

A well-performing supervisory committee can provide an audit report that will allow NCUA examiners to lessen the scope of their exam due to being able to rely on information the committee provided.

“Make sure the machine itself is working well,” Reed says.

KEYWORDS SCIAC

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • Reps introduce bipartisan Credit Union Board Modernization Act

  • Compliance: Experts analyze NCUA’s 2023 supervisory priorities

  • CFPB must convene SBREFA panel for credit card fee rulemaking

Tweets by CUNA_News

Polls

How do you feel about the economy in 2023?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us