COMPLIANCE VAULT

MAY 2023

NCUA's Climate-Related Focus

The NCUA released the Estimating Credit Union Exposure to Climate-Related Physical Risks last month and is now seeking comment to strengthen its ability to identify and assess credit unions’ current and future climate and natural disaster risks. The agency's research found that roughly one-quarter of all federally insured credit unions are in communities classified as having a relatively high or very high risk of experiencing negative effects due to natural hazards.

In focusing on the ten most costly natural disasters on FEMA's estimate of expected annual losses, it was found that roughly half of credit union assets are in areas at a relatively high or very high risk of experiencing a tornado, and a similarly large share of credit union assets are in areas exposed to strong winds.

Commenters are encouraged to provide input on any and all relevant issues they believe the NCUA Board should consider with respect to the financial risks associated with climate change. This includes, but is not limited to, risks posed to -- or stemming from-- field of membership, lending, investments, other assets, deposits, underwriting standards, insurance coverage, liquidity, and capital.

The request for comment notes, "Credit unions need to consider climate-related financial risks, and how they could affect their membership and institutional performance. For instance, a credit union's field of membership is often tied to a particular industry or community. To remain resilient and retain the ability to offer their members access to safe, fair, and affordable financial services, credit unions may need to consider adjustments to their fields of membership as well as the types of loan products they offer."

Comments are open until June 26, 2023.

World Elder Abuse Awareness Day

Credit unions see older members being victims of fraud or attempted exploitation all too often. On June 15, you can participate in World Elder Abuse Awareness Day (WEAAD) to help to spread the word about the many valuable resources that are available. Here are a few ideas to consider:

• Use your social media accounts to promote facts about elder fraud, how to recognize, report, and avoid it
• Host a table in your lobby to distribute materials for members (the FTC has many you can download or order and use)
• Encourage staff to wear purple on June 15 to raise awareness for WEAAD
• Raise funds to support a local organization that assists the elderly in your community
• Hold a community learning event on elder fraud prevention
• Volunteer time with a local organization that supports the elderly
• Invite local law enforcement or APS (Adult Protective Services) to talk to your team and build a connection or local network
• Schedule training for your team on elder fraud so they know the signs
• Attend the WEAAD event in Helena 5-7 pm on June 15 at The Montana Club to hear from stakeholders and increase your network of elder social justice warriors



Let me know if I can help with any of the ideas above and visit the NCEA page on WEAAD for more resources.

A Few Thoughts

The Back to Basics compliance webinar series concluded earlier this week. All nine session recordings and slide decks are available for you or your team on our Compliance Training Tools page. The webinars cover the most common questions we hear via the compliance hotline and are intended to spur conversation on "why" some things are done as they are, procedures to consider, and building a framework from the rules and regulations behind those topics.

With warmer weather and longer days, I am getting back out on the road to visit credit unions across Montana. I hope our paths cross on my travels in the coming months. If not, you can always reach out with any questions or compliance and training needs.

~Donya

Donya Parrish

VP- Risk Management

donya@mcun.coop

(o) 406.324.7374 |(c) 406.459.3497

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