When examiners review management practices, these are the points they focus on

NCUA reviewing management:

• Assess management’s ability to recognize, assess, monitor, and control risk

• Assess whether the credit union board of directors has sufficient expertise to adequately plan, direct, and control the operations of the credit union

• Determine whether the board and management adequately plan for future conditions and developments

• Determine whether the board is appropriately fulfilling its responsibilities and duties

• Determine whether the board has adopted adequate policies and operating strategies to conduct prudent credit union operations

• Determine whether the board establishes appropriate limits and provides direction before offering a new service or product

• Determine whether operating management has developed procedures to implement board policy

• Determine whether management performs due diligence on new, existing, and planned products and services

• Determine whether management has implemented adequate internal controls to ensure the sound operation of the credit union

• Determine whether management appropriately reports credit union operations and risk information to the board

• Determine promptness of corrective action initiated by management when deficiencies or violations in policies, practices, procedures, or internal controls arise