As the coronavirus outbreak continues to grow are credit unions serving first responders ready?
Credit unions serving first responders will be a primary point of contact as first responders come off duty and into the credit union.
ARLINGTON, Va.—How effective are credit union plans for addressing pandemics and business continuity?
It’s a question credit unions need to be asking right now as
the coronavirus outbreak continues to grow. Death tolls this week topped
1,100, with a record 100 officially reported as getting sick in a day.
The coronavirus has already surpassed SARS (severe acute respiratory
syndrome) in number of affected and killed.
Experts told
CUToday.info the growth of the coronavirus that CUs should be reviewing
their pandemic and business continuity plans, which likely have not been
visited since the SARS outbreak in 2002.
“I think it's too early
to tell what kind of impact the coronavirus may have here in the U.S.,”
said NAFCU Vice President of Regulatory Compliance Brandy Bruyere about
the potential effects on personal health and credit unions’ business.
“We're just trying to make sure credit unions have the resources they
need to take a look at this so they can be ahead of this.”
Noting
the last time many credit unions have likely visited their pandemic
planning was in 2002-2003 during the SARS outbreak, Bruyere said CUs
need to make plans to minimize the possibility of any effects from a
pandemic.
“Address any negative effects from a pandemic and have a
documented plan for continued operations,” said Bruyere. “Make sure
critical operations can remain in effect. Pandemic planning does differ
from more traditional continuity planning, in part because the impact
can be difficult to anticipate. So, pandemic plans need to be flexible,
and the plans need to reflect the credit union’s size, complexity and
business operations.”
The Biggest Risk
Bruyere noted that while NCUA’s supervisory priorities this
year do not include reviewing CU pandemic planning, “the agency does
have the right to go beyond their stated priorities. I think it's
possible they could look at these plans to make sure credit unions have
taken a look themselves.”
The biggest risk to credit unions from a pandemic, said Bruyere, is personnel.
“One
of the things regulators flag in all of their guidance on pandemic
planning is the risk to staff,” said Bruyere. “In these kinds of
situations you might have broad absences. You can even see that with
localized outbreaks of the flu. Employee protection strategies are
important, which include education on how a disease spreads. Address,
for example, minimizing face-to-face contact with others if you believe
there is an issue in your area. Maybe replace meetings with conference
calls…”
Bruyere noted the Federal Financial Institutions
Examination Council (FFIEC) recently updated its business continuity
management section of its handbook.
“This covers all the bases and includes, but is not limited to,
pandemic planning,” she said.
Recommended Steps
Carlos
Molina, senior consultant, Risk and Compliance Solutions, agreed most
U.S. workers are not at significant risk of infection at this time, but
the situation is evolving.
“It’s never too early to get ahead by
addressing employee concerns, taking measures to keep the workplace
sanitary and ensuring your employees feel safe,” said Molina.
In a Risk Alert recently sent to CUs, CUNA Mutual group recommended steps to address a pandemic:
Communicate and educate carefully: “Credit unions who
reasonably believe they could serve members or have employees who could
potentially travel to and from an infected region should be prepared to
provide reassurance and education. A statement from credit union
management should be made available that the situation is being
monitored, and human resources or risk management departments should be
prepared to provide information or access to appropriate agencies like
the CDC, Department of State, or local health organizations,” CUNA
Mutual Group said.
Emphasize good workplace hygiene:
“Remind employees of general good workplace hygiene practices such as
covering one's mouth when coughing or sneezing, avoiding contact with
sick individuals, and washing hands frequently. Consideration should be
given to providing tissues and hand sanitizer throughout credit union
locations. Waste bins should be emptied frequently and surfaces properly
disinfected,” the company said.
Reinforce sick leave policies: “Encourage
employees to review company sick leave and paid time-off policies and
encourage employees to stay home if they are feeling ill. Remote work
arrangements should be utilized if previously agreed upon. A point of
contact should be identified to answer any employee questions related
sick leave use, or the accrual process,” the Risk Alert stated.
Decisions to send employees home should be made carefully:
“Any decision made to send a visibly ill employee home should be done
so within existing policy guidelines. Attention should be paid to state
wage and hour laws for non-exempt employees where wages may be due even
for the period of time they were sent home. If a policy is currently in
place that requires an employee to inform the credit union of any direct
threat to the safety of other employees, including illness, it should
be noted that the credit union must keep all employees' health
information confidential, and should ensure that any policy is in
compliance with the Americans with Disabilities Act (ADA),” CUNA Mutual
Group said.
Avoid mandatory medical examinations and quarantines: “Unless
you have a reasonable belief that an employee poses a ‘direct threat’
to the workplace, the ADA prohibits mandatory medical examinations. Any
attempt to isolate or quarantine employees without prior authorization
by a public health agency or official can lead to risk liability under
the ADA, medical privacy laws, state wage and hour laws, and potential
national origin discrimination claims,” the company stated.
Other Resources
CUNA Mutual Group outlined additional resources that are also available:
