A crisis is coming – is your credit union ready?

In the 21^st century, crises are a reality of conducting business.

In a PwC CEO Pulse survey, 65 percent of CEOs reported experiencing a crisis in the last three years – and half of these CEOs reported experiencing two or more crises.

Unfortunately, these statistics are no different – if not worse – in the financial industry. Credit unions face a perpetual threat of institutional crises, ranging from natural disasters and data breaches to employee misconduct – 24 hours a day, seven days a week. In response, credit union leaders have integrated extensive data security measures and formulated multi-tiered crisis management strategies.

While these approaches are instrumental in preventing crises and mitigating the negative effects should an issue occur, they must be supplemented with effective leadership that protects members’ interests, trust and confidence.

So, how can leaders successfully navigate their credit union through a crisis?

Stay calm

In order to effectively manage a crisis, leaders must keep their composure. TalentSmart’s research of more than one million people found that 90 percent of top performers in the workplace are able to manage their emotions effectively and stay calm in times of stress.

This isn’t a coincidence – successful leaders show patience and discipline when faced with a crisis. Leaders set the tone every step of the way during stressful situations. Therefore, they must be cognizant of how their demeanor, words and body language could be perceived by their employees, customers and the public at large.

Use active listening

Ideally, leaders will have a crisis response team identified before something occurs, as part of a response plan. Leaders must utilize active listening when meeting with their response teams in order to gather as much information as possible, be efficient in their process and collaborate with their team on solutions.

Although a leader may not have all of the answers in a troubled situation, it is their responsibility to listen to stakeholders, make informed decisions and guide the organization during challenging times.

Be adaptable

Crisis incidents are ever-changing. Many times, new facts arrive that can turn a scenario completely upside down. Consequently, leaders must constantly be able and willing to adapt and evolve. Leaders cannot control all of the elements of a crisis situation, but they can control how they respond and set the tone for their credit union.

Be transparent

Leaders have to be honest and transparent with their employees at all times during a crisis situation. This ensures that their employees are operating under the same set of facts when reacting to the crisis.

They must also keep their credit union’s purpose and values at the forefront of any response. If different segments of an organization act under different assumptions, it is almost impossible to craft a solution to the problem at hand. Furthermore, leaders who are up front about issues are more likely to build trust and credibility.

Overall, the question is not if a crisis will happen, but rather when a crisis will happen. Leaders must anticipate potential challenges, engage the right team members and be ready to respond when the time comes.