By Robert M. Peplowski, CCD
Over the years I have developed my own “filters” for measuring the value and relevance of any seminar: information, interaction and inspiration. The inaugural Director Risk and Compliance Seminar I attended last month far exceeded my expectations for all three measures, thanks to our speaker, David Reed, a partner in Reed and Jolly, LCC, Fairfax, Va.
1. Information. Reed presented numerous subjects for general understanding and also identified tips and resources for deeper learning. For example, navigating the website of the National Credit Union Administration will provide just about any information you want relative to credit unions, including call reports, and rules and regulations). We also learned:
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about director compensation. While NCUA severely limits compensation for directors of federally chartered credit unions, state-chartered credit unions in several states may be permitted to compensate board members approximately $100 to $500 per meeting.
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how more NCUA regulations have been passed in the last four years than in the past 20. This rule-making is usually driven by individual instances of NCUA concerns/violations.
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that since Jan. 1, 2006, approximately a third of residential real estate equity has disappeared.
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how by Googling “How do I stop my foreclosure,” we can see who is providing advice to members in trouble. Try it!
2. Interaction. Reed did an exceptional job of continuously encouraging questions and sharing. Throughout the seminar there was a very energetic and spirited interaction between attendees which fostered an atmosphere of sharing ideas, best practices and suggestions. This overall sharing attitude was evident not only during “seminar time” but also during the breaks and lunches.
3. Inspiration. Many of the topics and discussions at last month’s seminar stoked the passion I have for the credit union movement and the idea of people helping people. I also came away inspired to share several ideas with our management team, and with support for several things I already believe in:
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Social media. Someone in the organization should be monitoring social media networks for complaints and negative posts. If you find negative messages early, you can stop further damage to your credit union’s reputation by resolving the complaint and turning it into a positive before it goes viral. Once reputations are damaged, recovery is very difficult.
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Member complaints. Complaints and kudos should be shared with the board in some manner agreeable to both the board and management. This information will give the board a flavor of the member experience and could provide the basis of a trend analysis of member satisfaction.
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Personal liability. As a director, you can be sued for anything, but “liability” is another matter. You are generally safe if you operate under the business judgment rule. This rule is the legal doctrine that officers and directors cannot be liable for damages for a business decision that proves unprofitable or harmful to the business so long as the decision was within the officers’ or directors’ discretionary power, and was made on an informed basis, in good faith without any direct conflict of interest, and in the honest and reasonable belief that it was in the business’s best interest.
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Director responsibility. We need to lead the operations of the credit union while being in conformance with all applicable laws and sound business practices. Even though we delegate the operational tasks, we must understand the activities in which we engage. Being a board member is not a spectator sport. You can delegate the task, but not the associated responsibilities.
Overall, this inaugural seminar was another extremely valuable tool and experience offered by CUES. I highly recommend attendance for directors, CEOs and supervisory committee members. As directors, we are fortunate to have a professional organization like CUES dedicated to providing diverse and numerous educational opportunities, networking, and relevant products--all targeted to credit union excellence. Thank you, CUES!!!
CUES Director member Robert M. Peplowski, CCD, is a director of $1.6 billion Lake Trust Credit Union, Lansing, Mich.
Read “Implementing 701.4: Not so scary, after all” by David Reed in CUES’ Credit Union Management magazine.
CUES’ Director Strategy Seminar is coming up in June in Vancouver, British Columbia.
CUES’ Director Development Seminar is coming up in September in Savannah, Ga.
Learn more about the Center for Credit Union Board Excellence and sign up for a 30-day free trial.
