Emerging Risks and How to Mitigate Them

5 Emerging Risks and How to Mitigate Them

With each technological advance emerges new risk. Think about it: Every technology upgrade, new mobile device and new payment method brings exposure that wasn’t identified previously.
The real threat occurs when these risks aren’t anticipated or communicated within your organization.
Here are five emerging risks every credit union should have on their radar right now:

1. Social media. Employees posting comments on social media that are inaccurate or appear incomplete or disparaging can threaten your organization’s reputation. Be careful when taking disciplinary action, as the National Labor Relations Board can classify social media activity as “protected concerted activity.” Mistakes here can lead to retaliation, wrongful termination claims and expensive litigation.
2. Internet of Things (IoT) era. The IoT offers new tools and technologies that provide constant connectivity. It also creates new opportunities for data compromises. Workplace devices – like printers, clocks, break room appliances and TV – and employee devices – like watches, Bluetooth headsets and fitness trackers – are all susceptible to hacking, which can lead to unauthorized access to your network.
3. Bitcoin and blockchain. Members may already use bitcoin and blockchain for fast and unregulated transactions, sometimes associated with nefarious activity. Unfortunately, about a third of bitcoin trading platforms are hacked.
4. Ransomware. Today’s phishing attacks can restrict access to files and threaten disruption or permanent destruction of sensitive information unless a ransom is paid. Ransoms can range from hundreds to thousands of dollars, and they are typically payable in bitcoin.
5. SMiSHing and website spoofing. As demand for mobile access grows, members don’t think twice when they receive texts claiming to be from their credit union. These fraudulent texts can infuse malware or redirect members to spoofed websites that allow fraudsters to capture or confirm personal or account information.

Credit unions must be ready to deal with emerging risks like these, while still tending to familiar threats. So, the bottom line is, don’t be complacent. Start implementing basic steps – like the following – today, so you don’t fall victim:

• Educate staff and members about spam, shams and other scams. Ensure they understand how to identify fraud. Teach them what to click and what not to click and how to use proper technology etiquette to keep themselves – and your credit union – out of harm’s way.
• Stay in the loop, as executive involvement is critical to success. Remember, when risk management is effective, nothing bad typically happens and the status quo is maintained. But, when you’re blindsided by a problem, poor risk management usually takes the blame.
• Follow a process that includes risk mapping matrices, risk heat maps and process mapping to help uncover potential risks, quantify their potential impact and keep leadership aware.
• Implement risk and compliance best practices, including policies and procedures to reduce potential loss. A number of great resources in the credit union marketplace are available to help, including those in CUNA Mutual Group’s Protection Resource Center.

As technology continues to evolve, risks will continue to emerge. So, do your best to visualize, track and communicate risk at your credit union. Once you identify an emerging risk, you can begin taking action to mitigate it.
Learn more about emerging risks by watching our recent webinar “Emerging Risks on the Radar.”

February 22, 2017 by NAFCU Services

By Joe Luedke, Risk Consultant – Emerging Risks, Risk & Compliance Solutions, CUNA Mutual Group.

NCOFCU Wants To Work Hard For You!

NCOFCU wants to work hard for your credit union on issues that impact credit unions serving firefighters and first responders. As we prepare to take our message to CUNA’s GAC, we're reaching out to you as a credit union leader to help us determine the credit union management issues that are of highest priority for our association members.

Please reply with your concerns and comments to;

Michael R. Tobler
NCOFCU Chairman
mtobler@affcu.net

Your responses will be confidential unless you wish to share them. We will use your feedback to make critical decisions in forming our legislative activities for the year. 

You can be certain that we will take your views into consideration. Thank you for your time and attention.

Grant Sheehan CEO
National Council of Firefighter Credit Unions Inc
www.ncofcu.org

Boston Firefighters CU Moves to COCC

Boston Firefighters Credit Union has outsourced its core processing to Connecticut Online Computer Center (COCC).

COCC’s hosted platform is based on Fiserv’s DNA core system.

The $251 million credit union, which services 8,000 firefighters, police and correction officers, was impressed with COCC’s senior management team and their commitment to the project, the vendor says.

Bernie Winne, president and CEO of Boston Firefighters CU, comments: “We liked the products but, more significantly, we liked the people.” He adds: “The products offered by COCC will be a significant technological upgrade from what we’ve been using.

“COCC offers much more functionality that is far more robust. It will allow us to do things that we’ve never been able to do.”

Established back in 1967 in Connecticut, COCC provides software and services to small banks and credit unions in the north east of the US.

Connecticut Online Computer Center

COCC was created by a collaboration of financial institutions to deliver real banking technology. At COCC, we feel strongly that our carefully crafted mission statement, vision and corporate values are reflected in everything we do.

Our mission is to be a trusted partner, delivering secure, quality solutions that drive the success of financial institutions, while providing a challenging and rewarding workplace for our employees.

Our vision is the hope that by embracing our business priorities and living our values, we will become the preferred technology provider in our industry.

And our values are embraced company-wide, and held up as a standard for quality in our industry.

https://www.cocc.com/  Email: info@cocc.com
Telephone: (860) 678-0444
Fax: (860) 677-1169

Earlier this year, COCC signed St Mary’s Credit Union and Abington Bank. In 2016, CorePlus Credit Union, Freedom 1st Credit Union, Maple City Savings Bank, Holbrook Cooperative Bank, GSL Savings Bank and Salisbury Bank joined the customer ranks.

San Francisco Fire Credit Union names Katherine Elser as its next CEO

SAN FRANCISCO, CA (February 14, 2017) — The Board of Directors of San Francisco Fire Credit Union ($1.2B in assets) is ecstatic to announce the appointment of Katherine “Kathy” Elser as the President and Chief Executive Officer. “What impressed us about Kathy is that she demonstrated the ability to balance prolonged growth while maintaining safety and soundness. She has the experience to lead during a time when credit unions continue to face disruptive and competitive forces. Her robust industry network will also serve our members well.” stated John Sweeney, San Francisco Fire Credit Union’s Board Chairman.

“San Francisco Fire is a vibrant and growing credit union that is deeply committed to its members and the communities it serves. A commitment to members is a top priority and passion of mine. I’m excited to see how I can lead the credit union to new levels while never losing sight of delivering an exceptional member experience.” said Elser.

Prior to San Francisco Fire, Ms. Elser was the CFO/SVP of Finance & Administration for Boeing Employees Credit Union where she was responsible for overall strategic positioning of the credit union and served as an Executive Management Team member. Elser’s career includes 20 years with BECU, a period during which she laid the foundation for and managed the institution’s exceptional performance and growth. She earned a reputation for being a collaborative leader, a dedicated mentor and a member advocate. Earlier in her career she worked in public accounting at Deloitte & Touche, LLP, and at various other financial institutions in both financial reporting and internal audit.


In 2012, Ms. Elser was awarded the Puget Sound Business Journal’s “2012 CFO of the Year”; category- Large Private Company. She serves on various community and industry executive committees and boards of directors. She also participates as a panelist and presenter at various credit union education forums and conferences. Elser is a graduate of the CUES CEO Institute and Cardwell 360 Leadership Institute. She holds a BS in accounting from Central Washington University and a MBA from Pepperdine University.

NCOFCU 2017 Annual Conference "Registration Is Now OPEN"

     “Great things happen when credit unions serving firefighters and first responders come together. Our Face-to-face interaction is the platform where collaboration begins, relationships are forged, and ideas are generated.

NCOFCU 2017 Conference
October 4-7, 2017 Charlotte, NC 

     ”We encourage all credit unions to support our cause and warmly welcome all to attend our annual conference! Conference Program

Registration is now OPEN

Credit Union Attendees

Exhibitors/Sponsors

Hotel Reservations

8 things to tell your employees – daily

Let's welcome Dan Berger as keynote speaker!

2017 NCOFCU Annual Conference Charlotte NC 10/4-7/2017

Dan Berger CEO NAFCU 

I’ve written many, many times on the importance of communication. However, I never grow tired of learning, or relearning, phrases that spur a positive organizational culture while motivating employees.

For example, Elle Kaplan, CEO of Lexion Capital Management, lists eight things “exceptional bosses” tell their employees – regularly – even daily.

She writes that bosses that use these phrases will not only see more employee engagement, but they will see their own success skyrocket.

Her phrases include:

1. “I have total confidence in you.” In other words, hire the best and let them do their jobs. Don’t micromanage. 

2. “This is what I want us to accomplish.” Make sure your team knows the big picture and how they fit into it. 

3. “What can we do better next time?” Instead of reprimanding someone for a mistake, use it as teaching opportunity. 

4. “I want to play to your strengths.” Everyone has strengths and special skills – use them. 

5. “What is your opinion?” Show your employees that you value them. 

6. “How can I better support you?” If you are a servant-leader, your employees will return the favor. 

7. “Let me know if you have any questions.” Have an open-door policy. 

8. “Good work.” Letting someone know that you care about their work goes a long way.

Motivating our teams begins with the words we say. While some of these phrases may come naturally, others might take some practice. I encourage the practice, because satisfied and motivated employees will only benefit you and your company.

New Consumer Due-diligence Requirements Mean Credit Unions Have to Change Bank Secrecy Act (BSA) Procedures

Starting May 11, 2018, credit unions and other financial institutions are required to have new procedures in place when it comes to customer/member due-diligence, primarily involving “beneficial owners” and “legal entity” members, reminded CUNA.
But the trade association reported that the new requirements do not mean credit unions have to update member information on a continuous or periodic basis.
“The rule does not require credit unions to update member information on a continuous or periodic basis. The updating requirement is event-driven and only occurs as a result of detecting unusual activity through normal monitoring,” CUNA stated.
The new procedures required by May 11, 2018, are:

• Procedures to identify and verify beneficial owners of legal entity members. 
• Procedures for making and maintaining a record of all the identification and verification information collected for beneficial owners of legal entity members. 
• Appropriate risk-based procedures for conducting ongoing member due diligence. 
• Updated recordkeeping procedures to record, any identification information obtained, a description of any document relied upon, any non-documentary methods used; and any measures taken in response to any substantive discrepancies, as well as the results of those actions.

According to CUBA, the rule also provides two new definitions:

• “Beneficial owner:” Ownership criteria (25% or more equity interest) and/or control criteria (has significant responsibility to control the legal entity). 
• “Legal entity:” Accounts owned by legal entities, rather than natural-person accounts.

Mortgage rates have risen for the first time in 2017

WASHINGTON–Mortgage rates have risen for the first time in 2017.
According to Freddie Mac:

• The 30-year fixed-rate mortgage (FRM) averaged 4.19% with an average 0.4 point for the week ending Jan. 26, 2017, up from one week earlier when it averaged 4.09%. A year ago at the same time, the 30-year FRM averaged 3.79%.
• The 15-year FRM averaged 3.40% with an average 0.4 point, up from one week earlier when it averaged 3.34%. A year ago at the same time, the 15-year FRM averaged 3.07%.
• The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.20% with an average 0.4 point, which was down from one week earlier when it averaged 3.21%. A year ago, the five-year ARM averaged 2.90%

"The 10-year Treasury yield increased more than 10 basis points this week,” said Sean Becketti, chief economist, Freddie Mac, in a released statement. “The 30-year mortgage rate moved up as well to 4.19%, a 10-basis-point jump. This week marks the first increase in the mortgage rate since December 29. The 2.8% decline in existing home sales in December is a reminder of the lack of homes for sale. According to the National Association of Realtors, supply is at its lowest level since 1999, a factor that should support higher house prices regardless of the oscillations of the mortgage rate."

President Donald Trump has appointed J. Mark McWatters as acting chairman of the NCUA

President Donald Trump has appointed J. Mark McWatters as acting chairman of the NCUA, industry sources said Thursday.

NCUA had not confirmed the selection by the time this story was posted.

McWatters, a Republican, replaces Rick Metsger, a Democrat who remains on the board. The president has the power to select a chairman and it had been widely speculated that Trump would select McWatters, since currently there are only two members on the three-member NCUA board.
The chairman designation does not require Senate confirmation

Trump will be able to nominate another Republican for the vacancy on the board. However, the president’s party may only have two seats on the board.

McWatters became a member of the board in August 2014, when he was confirmed by the Senate. At the time, he was new to the credit union industry.

Last year, President Obama nominated McWatters for a vacancy on the Export-Import Bank, but the nomination died when the-Senate Banking Chairman Richard Shelby (R-Ala.), an opponent of the bank, refused to consider the choice.

In the December issue of the NCUA Report, McWatters outlined several priorities he would like to see the board tackle this year, including areas in which the agency could be more helpful to small credit unions and the establishment of a Credit Union Advisory Council

Prior to joining the board, he was a member of the Troubled Asset Relief Program Congressional Oversight Panel and served as counsel to House Financial Services Chairman Jeb Hensarling (R-Texas).


Before that, he served as the Assistant Dean for Graduate Programs and a Professor of Practice at the Southern Methodist University Dedman School of Law, as well as an Adjunct Professor at the SMU Cox School of Business.

Fire Family Foundation Provides Over $350,000 in Aid in 2016

     

PRESS RELEASE

CONTACT: Robin McCarthy

626-497-9395

Fire Family Foundation Provides Over $350,000 in Aid in 2016
Assisting Firefighters, Fire Families

LOS ANGELES, CA -- As the charitable hand of the Los Angeles-based Firefighters First Credit Union, Fire Family Foundation dispersed more than $350,000 in assistance to firefighters and fire families in need in 2016.

That amount more than doubles the previous year.  

Serving firefighters, their families and fire victims, the Foundation ensures donations directly support those in need, covering medical expenses, mortgage payments and daily living costs; assistance was distributed to numerous individuals, families and communities impacted by fire. 

“Be it fire, devastation, illness or death, the support provided by the Foundation helps families, fire victims, and fire families begin the long process of recovery.  We continue to be humbled by the support we received in 2016 from the firefighting community and the general public,” commented Mike Mastro, Foundation Board Chair, who serves as President/CEO of Firefighters First.  “The Foundation continues to respond to those in need from injured firefighter to a family member with a medical emergency to a fire victim with a housing crisis.  The Fire Family is a close-knit community and we truly try to take care of one another.”

The Foundation helped many this year, including:

·        Young Annie who has been battling cancer most of her 5-year life

·        The family of a young firefighter who passed away unexpectedly while on vacation

·        Rialto Fire Department as they aided victims of the 2015 San Bernardino shooting

·        The family of an inmate crewmember killed as she helped battle a wildfire

·        Supporting a vigil for all first responders – including Oakland firefighters – in the aftermath of the devastating Ghost Ship Warehouse fire that claimed 36 lives.

·        Educational needs for the son of a firefighter who passed away

·        A fire captain struggling with PTSD

·        A veteran firefighter mom battling cancer who also has twin daughters

·        Victims of the devastating Erskine and Sand Fires, especially housing needs to firefighters who lost their own homes.

The assistance was broad.  Support went to Baton Rouge, Louisiana to help the flood victims, firefighters in Indianapolis who have struggled with cancer, and funeral assistance for a Charlotte, North Carolina firefighter as a few examples, plus dozens of fire victims within California.

Foundation Executive Director Robin McCarthy explained the Foundation’s focus and mission: “In 2016 Fire Family Foundation offered a hand to hundreds.  Some of our biggest assistance items were $123,000 in mortgages/housing costs; $75,000 for hospital/medical expenses; and $59,000 for education and tuition, to name a few.  This year we are helping more, providing support when victims feel alone and not certain where to turn, especially our firefighting community. Once again, we stand behind our dedicated firefighters.”

Learn more at Fire Family Foundation and individuals/organizations that it’s currently helping at www.firefamilyfoundation.org.  Follow Fire Family Foundation on Facebook at www.facebook.com/firefamilyfoundation and/or on Twitter at @FireFamilyFound. 

ABOUT FIRE FAMILY FOUNDATION

Fire Family Foundation responds when tragedy affects firefighters and fire victims.  A nonprofit founded by Firefighters First Credit Union, Fire Family Foundation offers immediate assistance to firefighters and their families, fire victims, fire departments, and charities.  The Foundation believes that by coming together as a “Fire Family,” assistance can be provided to those impacted by fire.