Credit Union Risk Management. Notes provided by: Deonna Grimes. Key Components to Risk Management. Every risk management program should have the following components: Risk Identification (where are the risks?) Risk Measurement (how bad is it?) Risk Control (mitigating factors)
Notes provided by: Deonna Grimes
Every risk management program should have
the following components:
Creating an ERM program can be difficult. An effective program requires cooperation from everyone in the organization
Key players in an ERM program include:
Categories of Risk:
- Fraud and errors
- A function of internal controls, operating processes, information systems, and employee integrity
Two Primary Types of Internal Fraud
1. Financial Misstatement—financial reporting fraud. Recent economic conditions have resulted in a “spike”
The credit union made it too easy for the perpetrator.
Increased opportunity through:
Opportunity presented itself when the two tellers shared their codes, and keys.