Industry consultants and software solutions can bridge the gap for credit unions struggling with risk management resources.
Not every credit union has the expertise or financial capability to build its own risk management department. In that case, they can turn to a third party for assistance.
At CUES Supplier member Rochdale Paragon LLC in Overland Park, Kansas, risk management assistance comes in the form of consultancy services and software platform apogee iQ. Rochdale is available to build a credit union’s enterprise risk management program and also to offer training and support. If desired, the company can manage the organization’s program on an ongoing basis. “We view ourselves not as a vendor but as a strategic success partner for credit unions,” says Tony Ferris, founder and CEO.
CUES Supplier member M&M Consulting, based in Springfield, Massachusetts, provides comprehensive risk management services through three divisions: compliance, internal audit and commercial loan review. “Our integrated services ensure that nothing is missed, and it cuts down on duplication and overlap in audit services,” says Dean Stockford, president/CEO of the Springfield, Massachusetts firm. “M&M ensures strong checks and balances throughout the process, regardless of which division is performing the audit.”
CUESolutions provider Experian, Costa Mesa, California, is the only national credit bureau with a national team 100% dedicated to the CU movement.
“We have a consulting practice with individuals who have decades of experience and are very familiar with documentation of strategy, risk guardrails and how to effectively balance portfolio needs and credit risk for the C-suite without necessarily requiring an entire carveout of FTE to do that,” says Craig Wilson, senior director of consulting. “Experian brings together big data and analytics as part of a convenient one-stop solution. If you’re unable to invest in a separate group for your second line of defense (as outlined in the three lines of defense model—operational management, internal monitoring and oversight, and internal audit), this would be a fantastic way to move forward.”
Based in Missouri, Diane Franklin is a longtime contributor to Credit Union Management magazine.