Prompted by the recent onslaught of natural disasters or emergencies and the massive dislocation they have caused, CUNA last week issued a national disaster preparedness plan for credit unions that coordinates responses to financial, communication and operational challenges that have resulted.
"Our hope is that the plan will be embraced by the credit union movement, as the plan presents solutions to lessons learned through past tragic events, and encompasses how players both within and outside of the credit union movement can work together to ensure the needs are met of credit unions, their members and their staffs in the aftermath of a disaster," said Juri Valdov, chairman of the CUNA Board and president of Northwest FCU, in Fairfax, Va.
The main purpose of the plan is to ensure continued service to credit union members, and maintaining confidence in the credit union system, stated Valdov.
Scott Earl, the head of disaster preparedness for CUNA, a position established in the aftermath of Hurricane Katrina, said the main focus of the plan is creating and maintaining communications among credit unions, their employees and their members. "I think that is the heart of this plan," said Earl.
He also said the CUNA committee that developed the plan also realized that many of the offers and contributions made after the 1995 bombing in Oklahoma City, the terrorist attacks of Sept. 11, hurricanes Katrina, Rita and Wilma, and other recent disasters, though well-meaning, were useless.
For example, free computers offered were sometimes incompatible with existing operating systems. "The focus going forward," said Earl, "will be on cash contributions, rather than in-kind contributions."
The plan emphasizes the partnership of CUNA and its state leagues, NCUA, the corporate credit union network, the Federal Reserve, CUNA Mutual, the National CU Foundation and state regulators, as well as business partners in working as a team to secure credit union services following a disaster.
CUNA plans to update the plan based on the evaluation of future disasters as they occur.
Among the main lessons learned from the recent disasters:
* a coordinated plan for disaster assessment that triggers "next-step:" activities is essential;
* communications is critical;
* "cash is king," that is, the availability of cash is critical for affected members;
* alternate communications and operational capabilities are important;
* an on-line system to raise funds form the credit union movement is crucial;
* additional strategic partners should be identified to meet emergency needs following a disaster;
* methods of raising humanitarian aid, like food, shelter and clothing, for credit union employees to help keep credit unions operating, are also key.
