Role of Internal Audit, A CEO’s Perspective
1951, Marietta GA$1B+ Assets200 FTEs
9 Member Centers11.3% NW, .98% ROAA
18% Mbr Grwth since 2009
Pillar 1 ‐Member
Enhance Member experience and Member value by making better use of our data for better decision making about products, channels, and future investments. For example, Marketing, Technology, etc.
Pillar 2‐ Continuous Improvement
Achieve a lower cost structure by continued improvement in efficiency and constantly asking how we can do things better, including how we can better leverage the technology investments LGE has made.
Pillar 3‐ Technology & Channels
Drive the bulk of our channel investment in e‐delivery and self‐service. Make practical investments in future Member Centers.
Pillar 4‐ People
Be the top sales & service Credit Union in the region by continuing to develop the sales & service culture. For example, extend beyond the front line, improve measurements, training, refine responsibilities by role, etc.
At the end of the day……
• LGE follows a 3 Lines of Defense Model• Everyone at LGE share the same objective
• Serving members• Grow and expand the organization• Maintain the security of member and CU data• Mitigate/eliminate risk in balance with
operational effectiveness and efficiency
Oversight
• Board & Senior Management• Commitment to Integrity & Ethical Values• Exercise Oversight• Structure, Authority, Responsibility• Competence• Enforcement of Accountability
1st Line
• Policy, Procedure, Process• Risk Assessment• Direct Oversight• Communication• Quality Control & Monitoring
2nd Line• Risk Management
• Compliance, Risk Mitigation, Legal, Loss Prevention, Monitoring, Information Security
• Various Board & Management Committees• SC, ALCO, IT, MBL
• External Reviews and “audits”• FHLB, Compliance, Vendor
3rd Line
• Supervisory Cmte/Internal Audit• Independent• Objective• Consultative
• External Audit and Examinations• Financials & Accounting• State and Federal
Challenges
• Culture• Perceptions• Pride• Territory/Lines of Responsibility• Willingness of Stakeholders to accept
Critique
Current State
• History• Build Creditability• Collaboration, Communication,
Coordination• Willing to Find Middle Ground• Understanding Roles
History….
A start…
Present…
Our Future…
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