Rochdale

The NCUA approved a new succession planning rule earlier this week. The rule will go into effect January 1, 2026. Per the communication, the need for the rule was highlighted by two key factors: (1) long-running trend of credit union consolidation, and (2) increased retirements of credit union executives. If your credit union doesn't have a succession plan in place, it's time! The final rule also came with a sample template for a succession plan that should benefit all credit unions. #successionplan #creditunions

Data alone isn’t enough. Going through the motions doesn't get you anywhere. Your risk program needs to go beyond simply collecting and reporting "stuff"—it must deliver strategic insights that drive action and create value. By connecting risk data to key business decisions, you ensure your program becomes a catalyst for growth and resilience, not just a box-checking exercise. This holiday season, ask yourself: "Is our risk program delivering insights that truly move the needle?" If not, set a goal now to make the New Year different! Need help? Reach out and let's chat!

Is your credit union’s risk appetite still aligned with today’s realities? In an ever-evolving environment of interest rate uncertainty, cybersecurity threats, and changing member expectations, sticking to an outdated risk appetite can expose credit unions to unnecessary pitfalls—or stifle growth opportunities. Regularly reassessing and updating your risk appetite ensures you’re balancing resilience with innovation, protecting what matters most while seizing opportunities for members and other stakeholders. When was the last time your credit union reviewed its risk appetite? Reach out as we'd welcome the opportunity to assist and ensure your risk appetite is keeping up with the times - [email protected]. #RiskManagement #CreditUnions #Strategy

An effective enterprise risk management (ERM) program is crucial for credit union success. However, many fall into the trap of adopting a compliance-centric approach, focusing solely on meeting regulatory requirements. While compliance is essential, it often leads to a black-and-white view of risk that can hinder strategic agility. This is where objective-centric risk management comes into play, offering a more nuanced and strategic approach. Real ERM aligns risk management practices with the organization's strategic goals. Instead of merely ticking boxes to satisfy regulators, this approach ensures that risk management is integrated into the core of strategic planning. By understanding and managing risks in the context of organizational objectives, credit unions can navigate uncertainties with greater agility and foresight. One of the key advantages of objective-centric risk management is its ability to provide actionable insights that drive strategic decisions. When risks are assessed and managed with strategic goals and objectives in mind, leaders can make informed decisions that support long-term success. This proactive approach allows you to anticipate potential challenges and leverage risk insights for competitive advantage. In contrast, compliance-centric risk programs often struggle with the nuances of strategy. The focus on regulatory adherence creates a rigid framework that stifles innovation and adaptability, creating challenges when responding to emerging risks and opportunities, as the risk management practices are not designed to support strategic flexibility. There's no question that risk and strategy are inherently intertwined. Effective risk management should not be seen as a distraction from strategic tasks but as a vital component of achieving strategic objectives. By adopting an objective-centric approach, credit unions can ensure that risk management enhances, rather than hinders, their strategic initiatives. It's time to move beyond mere compliance and embrace ERM as a strategic tool for success.

This is something we are hearing more and more about and are glad to see the guidance provided by FinCEN and the NCUA.

A recent study by the NC State ERM Initiative shows that just over 30% of survey respondents describe their risk oversight practices as "mature" or "robust". More alarming is the data point that suggests only about 10% of respondents in the U.S. feel that their ERM program provides a unique competitive advantage. While organizations might be doing more, there's little proof they are doing better. Or, perhaps, the hyper focus on compliance and operational risk provides far less value than being intentional about emerging and strategic risks that are much more insightful when it comes to strategic decision making (the true purpose of ERM)?   The NC State study goes on to outline a few key questions you should be asking about your ERM program? *To what extent is the organization's risk management process providing helpful insights for making important strategic decisions? *What types of risks dominate c-suite and board risk discussions? Is sufficient time given to external items related to strategic issues, such as emerging technologies, competitor moves, unexpected entrants to the industry and other market issues? *To what extent does the organization's approach to strategic planning, business plan development, and budgeting explicitly request insights about risks addressed or potentially created by those plans and requests? *When senior executives and the board engage in strategic planning discussions, what kinds of risk insights, if any, are they requesting the ERM function to share? *How are differences in risk conditions considered when senior executives make budgeting and capital allocation decisions? If you are struggling to get value from your risk program, would be interested in exploring how Rochdale's solutions might be of benefit to your organization, or would just be interested in catching up, please let us know. We would love to chat! Feel free to reach out at [email protected].

So many see ERM as strictly a means to reducing or eliminating risk. They search for magical software, fully integrating 'all the things' into a red/yellow/green dashboard that will supposedly be the secret to success. However, this isn't the purpose of ERM, nor is the magic found in such software. The attached article does a nice job of outlining key elements necessary to propel the role of ERM professionals to true strategic advisors.

This holiday season, we’re thankful for the entire Rochdale team and each of our clients. Thank you for the partnership and allowing us to serve you and your teams!

Happy Thanksgiving from the Rochdale and apogee iQ team! We are thankful for all the opportunities we have to partner with credit unions and look forward to many more! Please note that our offices will be closed November 28 and 29 providing our team time with their families.

Check out Rochdale COO, Jeff Owen, as he discusses risk appetite! This is one of the best, most powerful, ways to engage your executive team and board in risk conversations!