Business & Technology A safety & soundness perspective Information Meetings September / October...
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Business & TechnologyBusiness & TechnologyA safety & soundness A safety & soundness
perspectiveperspective
Information Meetings Information Meetings September / October 2004 September / October 2004
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Business & TechnologyBusiness & Technology
Technology is a toolTechnology is a tool
Business is the keyBusiness is the key
New communication channelsNew communication channels Use of EmailUse of Email Use of InternetUse of Internet
Money Transmission - EFT, ATM, Bill Pay etcMoney Transmission - EFT, ATM, Bill Pay etc
Reporting – Call reports , Annual Returns etcReporting – Call reports , Annual Returns etc
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Credit Union IT SystemsCredit Union IT Systems
Provide:Provide:
Data and transaction processingData and transaction processing
Reports and auditsReports and audits
Business planningBusiness planning
Data storage Data storage
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Credit Union IT SystemsCredit Union IT Systems
What about access to data and data What about access to data and data protection?protection?
What about operational procedures?What about operational procedures?
What about controls?What about controls?
What about oversight?What about oversight?
What about responsibility and What about responsibility and accountability?accountability?
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Safety & SoundnessSafety & Soundnessin Credit Unionsin Credit Unions Responsibility to serve the membership Responsibility to serve the membership
properlyproperly Must operate within the lawMust operate within the law Protect the business from unnecessary riskProtect the business from unnecessary risk Protect and enhance reputationsProtect and enhance reputations Develop a sound business ethosDevelop a sound business ethos
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Safety & SoundnessSafety & Soundnessin Credit Unionsin Credit Unions
Essential to consider in terms ofEssential to consider in terms of
Existing systems & operationsExisting systems & operations
New services offeringNew services offering
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Safety & SoundnessSafety & Soundnessin Credit Unionsin Credit UnionsQuestionnaire & ResultsQuestionnaire & Results Password Security - Users are not accountablePassword Security - Users are not accountable
Users share passwordsUsers share passwords Users cannot change their own passwordsUsers cannot change their own passwords
Deletion of DataDeletion of Data Auditing of cancellations, amendments and deletions needs Auditing of cancellations, amendments and deletions needs
improvementimprovement Electronic data recovery should always be possibleElectronic data recovery should always be possible
Electronic reportingElectronic reporting Users unable to extract reports electronicallyUsers unable to extract reports electronically Critical reports cannot be reproducedCritical reports cannot be reproduced
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Safety & SoundnessSafety & Soundnessin Credit Unionsin Credit Unions
Questionnaire & ResultsQuestionnaire & Results Dormant and Deceased AccountsDormant and Deceased Accounts
Better management required, system controllingBetter management required, system controlling
Money LaunderingMoney Laundering Report on values exceeding specified limits within a Report on values exceeding specified limits within a
periodperiod
GeneralGeneral Low level of appreciation for system security in Low level of appreciation for system security in
credit unionscredit unions
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Safety & Soundness Safety & Soundness in Credit Unionsin Credit Unions
RisksRisks Poor or no clear accountabilityPoor or no clear accountability
System weaknesses or perceptions of System weaknesses or perceptions of weakness can lead to fraud or lossweakness can lead to fraud or loss
Poor procedures and controls in credit Poor procedures and controls in credit unions can lead to fraud or lossunions can lead to fraud or loss
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Safety & Soundness Safety & Soundness in Credit Unionsin Credit Unions
Next StepsNext Steps Awareness, appreciation, buy-inAwareness, appreciation, buy-in Set and improve standardsSet and improve standards
• Improve data access security and auditing capabilityImprove data access security and auditing capability• Credit union procedures enforcementCredit union procedures enforcement• Implement best practice in operationsImplement best practice in operations• Board and management oversight is necessaryBoard and management oversight is necessary• Active supervision is essentialActive supervision is essential
Manage the risks betterManage the risks better
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Safety & Soundness Safety & Soundness in Credit Unionsin Credit Unions
Feedback & DiscussionFeedback & Discussion