NCUA's Supervisory Letter on Enterprise Risk Management: ERM

Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

Understanding Enterprise Risk Management (E R M) and NCUA's Supervisory Expectations

In this podcast episode, Samantha Shares discusses NCUA's supervisory letter to credit unions on Enterprise Risk Management (E R M). The episode interprets this 2013 guidance that remains active and often referred to in examinations and examiner discussions with credit unions, particularly larger ones. Samantha breaks down the principles of ERM, its basic components, and clarifies that natural person credit unions are not mandated to have a formal E R M, but are expected to maintain adequate risk management processes relative to their business model and strategical practices. She furthers delves into the role of examiners in evaluating credit unions' risk management programs, and highlights that while E R M can be beneficial for larger, complex credit unions, it isn't a regulatory requirement for natural person unions.

00:00 Introduction and Sponsorship
01:00 Understanding Enterprise Risk Management (E R M)
04:00 Components of an E R M Framework
09:20 N C U A's Perspective on E R M
10:59 Addressing Risk Management in Examinations
13:16 Conclusion and Contact Information