Interactive Table of Contents - (Point and click on topics - or point and hold down Ctrl and Click)

A benchmarking "Mission Statement" for 2996...

A report on RM projects progress...

A suggested RM project "Mission Statement" for 2007...

A suggested RM Strategic Action Plan for 2007...

The benefits of "Security Integration" and "Convergence" at the credit union and chapter levels...

Risk Management Process Improvement for 2007...

A better way to use "Cash Item Guidelines" in 2007...

A better approach to customizing data sheets...

The need to prioritize risks in Great Britain and Ireland "separately".

Why embezzlement risks in Ireland are going up, and up, and up...

Using "fireside chats" to manage risks, create opportunities, and market CM products and services...

First... I will benchmark the RM programs in England, Scotland, Wales, and Ireland. Second...I will create a way to safely collect, securely store, and efficiently analyze RM risk and exposure information via the internet so hard copy data sheets can be eliminated. (This will allow all Risk Management personnel to enter data anytime and from anywhere. It will also allow CMG personnel in Madison Wisconsin, Birmingham England, and Dublin Ireland to simultaneously access and evaluate RMA data collected by frontline CMG personnel.) Third... I will develop an online RM manual and tutorials to facilitate RM training, cross-training, and sharing of RM research. Fourth...I will design and promote a Credit Union Unified Incident Command and Control System (CU-ICS) to teach "convergence" and promotes the formation of public-to-private partnerships needed most when a community or country is threatened by a natural disaster, terrorist attack, or pandemic. Fifth... I will organize a Credit Union Incident Response Team (CIRT) that can be used as a role-model in the credit union movement and CUNA Mutual Group. The CIRT will adhere to internationally recognized ICS and NIMS policies, procedures, and protocols. Sixth...I will submit a suggested mission statement and strategic action plan for the RM project managers at CUNA Mutual Group - International. 

On the downside, most on-site RM analysis done in 2006 focused on burglary and robbery, and not on the internal control, fidelity, forgery or fraudulent deposit analyses. While burglary and especially robbery will continue to need regular attention, in my opinion, CUNA Mutual's next big claim will be an embezzlement claim coming out of Ireland. I strongly recommend Steve quickly train John to do the internal control, fidelity, forgery and fraudulent deposit analyses and make those the focus during 2007. Needless to say, in Dublin especially we need to continue talking about the risk of robbery.  

CUNA Mutual's RM project budgets followed the same program development model used by the Department of Homeland Security and emergency governments. In '03 and "04 we focused on getting appropriate physical, alarm, surveillance, and access security in place based on the cash item exposures in each bonded credit union. Our presentations focused on basic RM principles and methods (Identify, Measure, Control, - Avoid, Reduce, Spread, Assume, and Transfer to CUNA Mutual). In '05 and '06 we focused on training a cadre of CUNA Mutual and Credit Union Risk Managers in each CUNA Mutual market. RM disciplines we taught included creating controllable crime scenes, defendable zones, contingency planning, business resumption, succession management and integrating security systems. In my opinion, these CUNA Mutual RM projects have been focused and "right on target!"

 

In 2007, the operative RM discipline will be system "Convergence" and the strategy will be creating RM partnerships at all levels of the credit union movement and public-to-private partnerships at the local and regional levels.  Without a doubt forming public-to-private RM  partnerships has recommended RM solution at every conference on natural disasters, terrorism and pandemics. We've learned all three can devestate an economy.

Suggested Risk Management Mission Statements for 2007 In 2007 we will... move from hard copy data sheets to e-based data sheets so they can be more easily accessed by authorized CMG personnel to include Madison Wisconsin based underwriters and claims personnel. We will.. maintain RM files by postal codes and transmit survey data using "key" codes to enhance security. We will... promote the latest RM methods to include security integration and convergence at the credit union, chapter, regional, country, and international levels. We will... write a CMG Incident Command and Control response and recovery plan and form a CUNA Mutual/Credit Union Incident Response Team (CIRT) for the Midland East and Midland West credit union chapters that serve credit unions in the Birmingham England and surrounding area and the chapters that serve credit unions in the Greater London area.   Suggested Risk Management Strategic Action Plans for 2007 Strategic Action Plans for 2007 should include the following: During January, create excel spread sheets logging credit unions by postal code, bond contract number, ID #, and column for a key code! During first quarter, customize www.surveymonkey.com customer surveys for England, Scotland, Wales, and Ireland! During first quarter, create a two hour RM program to be used during a "fireside" chat session on the CU-ICS! During the second quarter, create customer surveys to replace the burglary, robbery, internal control, forgery, and fidelity risk analyses. During the second quarter, create an RM R&D library of web sites for doing postal code specific crime analysis. Cross train CMG personnel on how to use the internet to create current statistics for chapter presentations. During the second quarter, use the chapters around Birmingham as a template to create a CU-ICS! During the second quarter, organize a CIRT for the two chapters serving the Birmingham area.  Conduct a series of "fireside" chats on a chapter basis during the second and third quarter so to be ready for benchmarking during the first week of November each year. Introduce "convergence" and "security integration" at the chapter level.. Above:  Steve Finnigan and Isabel Shakespeare, General Manager of CitySave Credit Union at 16 Waterloo Street in Birmingham England B25U, discuss the evacuation plans recommended by the City of Birmingham authorities. Above - Right:  Isabel Shakespeare explains to Steve how her chapter (Midland East?) and Steve's chapter (Midland West?) compare to the evacuation plan recommended by Birmingham authorities. Go to www.birminghamalert.co.uk for an excellent example of city emergency government web sites. Note how the ABCUL web site at www.abcul.org and the Citysave CU at www.citysave.org.uk use postal codes to track locations and maping.  Combining such web sites using postal codes would be an example of "convergence." Creating a "unified" credit union incident command to evacuate Birmingham using one of the many GPS programs is another example of "convergence."                                                                                                                                                                                                  Rich Woldt   The Incident Command System provides an ideal template for teaching Risk Management.  For example, the Operations Chief forms burglary, robbery, fire, and medical emergency teams and teach them to assess credit union operational risks. The Planning Chief teaches contingency planning, the Logistics Chief teaches site security, how to create controllable crime scenes and defendable zones, and the Finance Chief teaches how to establish and consistently adhere to proper internal, audit, and collection controls. Staging area managers teach how to set up and manage responding resources. The Safety officer is one of the most important positions. He/she makes sure that credit union personnel are properly equipped and trained before being deployed to the hot zone. The Information officer makes sure the credit union speaks with one voice and the Liaison Officer makes sure no one gets lost in the confusion. Oh yes! The Incident Commander teaches how to take command and control over an incident that left alone will spiral out of control.             Rich Woldt The Credit Union Incident Command System (CU-ICS) is staffed by a trained "Credit Union Incident Response Team" (CIRTs). You's called up by the Incident Commander will depend on the type, scope, and duration, of the incident. Who takes part depends on who's willing, able, trained and prepared to respond. Click here for a tutorial on forming your CIRT...

Risk Management Process Improvement for 2007 - The Benefits from Benchmarking 2006

Benchmarking in December 2006 confirmed CUNA Mutual is on target based on past RM mission statements, AIMs, and strategic action plans. However, there is an urgent need to increase the speed at which Risk Managers are doing their RM research and development of new RM methods specifically in the area of internet fraud, internal dishonesty/embezzlement, organized crime to include gang MOs, and the known terrorist threats to disrupt regional economies. There is also an urgent need to adjust the focus of on-site risk assessments so more attention is given to embezzlement, external frauds, scams, internet crimes including phishing at credit unions during mergers, and risks associated with the new liquidity management tools being introduced in Great Britain and Ireland, i.e. debit and/or credit cards. There is also an urgent need to introduce a CU  Incident Management System at the credit union and chapter levels to reduce losses that escalate during and after a natural disaster. Risk Management Analysis need to be converted from hard copy to an internet based system that's properly secured so it can be sorted, analyzed, and shared with any authorized CMG underwriter, claims adjuster, account relationship manager, and Risk Manager.

Implementing the recommendations in this report will..

• Expand the cadre of CUNA Mutual Risk Managers in Great Britain and Ireland from two (Steve Finnigan and John Hamilton) to two plus all CUNA Mutual personnel serving this market.
• Provide 2007 Risk Managers with 24/7 internet access so they'll be able to access risk analysis data sheets, customer surveys, and excel spread sheets set up to sort, identify, and measure risks by postal code. Click here for a sample survey and click here for a sample survey assessment tool. If these links don't work try the colored icons below or in chapter I of the workbook.
• CUNA Mutual Risk Managers in 2007 will be able to submit risk and exposure information as well as incident reports from any where at any time via the internet.
• CUNA Mutual' underwriters, claims personnel, Risk Managers, and project supervisors will be able to obtain the most current risk and exposure information on file at the moment.
• Once risk and exposure information has been logged onto excel spread sheets, Risk Managers will be able to focus their RM workshops, presentations, and fireside chats where CUNA Mutual has the greatest exposure concentrations.
• In summary, implementing process improvements from benchmarking 2006 will make CUNA Mutual RM programs and projects more affective, more efficient, and more focused on the best interest of the credit union movement in Great Britain and Ireland.

• This survey is for CUNA Mutual support personnel or those who need to rely on back office RM project record keeping! Following is an icon with a link to be used if you want to email the survey to CUNA Mutual personnel.

  This survey is for CUNA Mutual Account Representatives, CUNA Mutual Risk Managers, CUNA Mutual Underwriters, and CUNA Mutual Claims Personnel. It's purpose is to determine how beneficial RMA data sheets and written reports have been to you during 2006.

  This survey is for CUNA Mutual customers to include bond holders and those who CUNA Mutual Risk Managers partnered with during 2006. Following is an icon with a link to be used if you want to email the survey to CUNA Mutual Customers:

A primary RM challenge in Great Britain and Ireland in '07 will be to take a graying credit union population that prefers hand posted ledgers to internet banking and make them comfortable with on-line internet RM research. I've introduced www.surveymonkey.com to move RM analyses onto the internet and www.fraudwatchinternational.com  to encourage CUNA Mutual and Credit Union Risk Managers to follow. Dublin, where 90% of CUNA Mutual's Irish market is located is fast becoming the economic gateway to Europe and the financial crime capitol of the world. RM programs in this part of the world need to come up to the speed of the internet. I recommend, focused internal and audit control surveys be used to identify vulnerable credit unions and scheduled RM "fireside chats" to leverage the aging eyes and ears in our market. Note: I use "fireside chat" for lack of a better description of getting together in an informal setting and share our concerns for the common good. Politicians call them "town meeting," business leaders call them "business luncheons." I see CUNA Mutual providing the coffee and donuts and the credit unions providing the space and participants. Our stated mission in '07 should include building partnerships for CUNA Mutual at all levels of the credit union movement. I see these chats as an opportunity to do just that. 

I recommend a series of two hour evening fireside chats be scheduled at the larger credit unions in each chapter. Focus the evening on what credit unions in the chapter are doing to prepare for the looting that occurs during a large scale evacuation, how terrorist case their targets and how they extort janitors and back office employee into being part of identity theft scams. During the chat, discuss what sponsors plan to do if a pandemic wipes out the predicted 40% of their workforce. Or for that matter what credit union plan to meet the liquidity needs of victims while controlling their delinquencies.

Fireside chats provide CM opportunities to bond (pun intended) with their market on a personal level, manage risks they can't avoid pooling, and identify new CM markets and the need for new CM products such as flood or crop insurance, higher extra expense limits, the need to adjust the 80% co-pay, and change WC premium classifications. Most important, fireside chats offer an opportunity to confirm credit unions are properly equipped, trained to handle the next burglary, robbery or act of violence at their credit union, are consistently using proper internal control and audit controls based on their member services. They're much like holding a group RMA!  Almost equally important, fireside chats are a cost effective way to build a stronger, more progressive market that in turn grows new CM opportunities. Refer to my benchmarking reports from '04 and my recommendations on creating a central liquidity option in the UK to facilitate open-end borrowing, reduce delinquencies, better serve the liquidity needs of members, and grow a larger more stable CUNA Mutual market. I still think this is the key to growing the CU movement in Great Britain and subsequently CUNA Mutual marketing opportunities. Fireside chats with credit unions in the UK and Ireland are a great first step both from an RM and CMG marketing perspective.

If my research is correct, 90% of CUNA Mutual's Ireland market is located in Dublin where there is an increasing gap between the have's and have-nots; and the generation of volunteers compared to the "Me" generation. In Great Britain, CUNA Mutual's market concentrations is along the railroad system with the greatest concentration in the Greater London area. The RM concern is, there is a predicted 10 fold increase in rail transportation of radioactive waste and an increased warning from terrorists that they plan to attack the trains in Europe to disrupt the economy.

This is why I strongly recommend logging and sorting credit unions by postal code so CUNA Mutual can identify credit unions down-wind and within X miles of the railroad. Knowing the risk (toxic waste spills) and the exposures credit union population within X miles of the track, Risk Managers will be able prioritize their fireside chats and hold them in chapters at credit unions most at risk.