ORLANDO, Fla. – The fallout in the credit markets is expected by some analysts to sweep up credit unions with other financial institutions in new, risk-related regulations that will be atop the legislative agenda when a new administration takes office in Washington.
“I think this will probably be the year of risk,” said JR Clemons, president of Harland’s Risk Management & Compliance unit.
“Everyone in the organization from top to bottom must be focused on the issue of risk – credit risk, operational risk, portfolio risk. I think you can expect a big raft of new regulations and compliance to come down the pike. In today’s financial institution, everyone is a chief risk officer. Credit policies are going to be pushed lower and lower into the organization as a result of the financial credit market,” he told The Credit Union Journal yesterday.
Harland’s Sam Kilmer said the company is projecting financial institutions, including credit unions, should be prepared for a new level of required documentation. “There is a lot of anticipation that regulators are going to ask for more and more risk management,” said Kilmer. “Regulators are going to be increasingly vigilant about transparency, and will want (credit unions) to show their process on the commercial side, just like they do on the retail side.”
