CastleHill Managed Risk Solutions Blog

How Your Credit Union Can Stay Up to Date on Your Vendor Risk Management Program

Posted by Michael Duggan on Aug 25, 2017 10:20:00 AM

Weighing in at $18.5 million, Target has agreed to pay the largest-ever fine for a third-party data breach. When you consider the scope of the compromise – nearly 70 million customers and/or accounts affected and an estimated total loss of $202 million by Target, the fine almost pales by comparison. How did the thieves access Target’s data? Through an unlikely third-party vendor, specifically an HVAC contractor. More important lessons to learn from Target’s unfortunate risk debacle are in the details, specifically the breakdowns and negligence of their own risk management processes. While you might not see immediate parallels between a retail behemoth like Target and your credit union, the fact is that all third-party vendors put every organization at some degree of risk, making a functional and up to date vendor risk management program an important part of a mature approach to overall enterprise risk management.

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Topics: Credit Unions

Credit Unions - Working Together to Reduce Risk and Save Money

Posted by Michael Duggan on May 25, 2017 11:42:00 AM

If you are a credit union, we don’t have to tell you about the burden of governance, risk and regulatory compliance (GRC). The recent Regulatory Burden Financial Impact Study from Credit Union National Association (CUNA) and Cornerstone Advisors confirms it. In 2014, GRC for credit unions cost a whopping $7.2 billion, including $6.1 billion in actual costs and $1.1 billion in lost revenue. As member-centered institutions, everyone loses through increased costs and reduced benefits. In fact, CUNA reports that since 2008 credit unions have endured more than 190 separate regulatory changes from nearly three dozen government agencies. Is it any wonder compliance costs currently make up almost 20% of total operating expenses and a full 40% of staff expenses? The result, according to the CUNA article, is a shrinking credit union pool with numbers down 40% in the past 10 years due to factors such as mergers and reduced applications.

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Topics: Credit Unions