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Credit Unions Can Learn How FFIEC Cybersecurity Assessment Tool Works

ALEXANDRIA, Va. (Oct. 30, 2015) – Credit unions now have another resource from the National Credit Union Administration to help them use the Federal Financial Institutions Examination Council’s cybersecurity assessment tool (opens new window) to evaluate their ability to address cyber risks.

The video, available here (opens new window), provides an overview of how the assessment tool works. The assessment tool can help credit unions pinpoint strengths and weakness in their cyber security programs.

“The increasing volume and sophistication of cyber threats pose real risks to the credit union system,” NCUA Board Chairman Debbie Matz said. “NCUA has created this new video to supplement the online information found on our Cyber Security Resources webpage and to encourage credit unions to take steps to identify, assess and mitigate risks. Cyber security continues to be a core focus for NCUA, and I encourage all credit unions to take steps to protect themselves, their members and the entire financial system.”

The FFIEC’s cybersecurity assessment tool is designed to enhance cyber security oversight and management capabilities, identify gaps in risk management practices and inform associated risk management strategies. The assessment tool is meant to be an enterprise-wide risk management tool that credit unions can use and revisit periodically as significant technological changes occur.

The video also directs credit unions to the FFIEC webpage (opens new window)for additional resources like joint statements, webinars and other information about cyber security.

The Federal Financial Institutions Examination Council (FFIEC) members today issued a statement alerting financial institutions to the increasing frequency and severity of cyber attacks involving extortion. 

The statement describes steps financial institutions should take to respond to these attacks and highlights resources institutions can use to mitigate the risks posed by such attacks.

Cyber attacks against financial institutions to extort payment in return for the release of sensitive information are increasing. Financial institutions should address this threat by conducting ongoing cybersecurity risk assessments and monitoring of controls and information systems. In addition, financial institutions should have effective business continuity plans to respond to this type of cyber attack to ensure resiliency of operations. 

Financial institutions are also encouraged to notify law enforcement and their primary regulator or regulators of a cyber attack involving extortion.

More information about financial institution cybersecurity, including information about mitigating the effects of destructive malware and other threats, is available from the FFIEC at www.ffiec.gov/cybersecurity.htm (opens new window).

Attachment: FFIEC Statement on Cyber Attacks Involving Extortion (opens new window)

Changes Include Easier Navigation, Mobile-Friendly Content and a New Design

ALEXANDRIA, Va. (Nov. 2, 2015) – Users of the National Credit Union Administration’s public website will be able to find the critical information they need more easily thanks to the debut of the agency’s redesigned and improved website.

“Credit unions, consumers, examiners and state regulators are the core users of NCUA.gov, and we used their feedback to develop the new website,” NCUA Board Chairman Debbie Matz said. “With the changes launched today, our website will be more intuitive and accessible. The new website also improves our ability to effectively communicate with the broader credit union system and further supports NCUA’s transparency initiatives.”

The new NCUA.gov features improved navigation and a mobile-responsive design will adapt to facilitate the viewing of the website on all platforms, including smartphones, tablets, laptops and desktops. Other website features and improvements include:

• A new Small Credit Union Learning Center featuring training videos and materials as well as other resources from NCUA’s Office of Small Credit Union Initiatives;
• A new online newsroom and social media hub where stakeholders can get the latest news, read articles from The NCUA Report and download graphics and photos;
• A new “I’m a…” search function that allows users to self-identify and quickly access the agency’s most frequently requested content; and
• A new consumer section that links to the agency’s consumer protection resources, consumer assistance center, share insurance information and financial literacy materials.

To help users get familiar with the new NCUA.gov, the agency has developed a brief video, highlighting the website’s new features and other changes.

During the remainder of the year, NCUA will continue to add new functions and additional content. Users can send their comments and suggestions for future improvements to the website by email to Webmaster@ncua.gov.

ALEXANDRIA, Va. (Nov. 4, 2015) – Eligible credit unions interested in consulting assistance from the National Credit Union Administration’s Office of Small Credit Union Initiatives in the first half of 2016 have until Nov. 30 to submit nominations, the agency announced today.

“I encourage all qualified credit unions to apply for our consulting program,” NCUA Board Chairman Debbie Matz said. “From strategic planning to new product development, our consulting program provides individualized solutions for the challenges facing credit unions as they compete in a diverse and evolving financial services marketplace.”

The first consulting period of 2016 begins Jan. 1, and runs through June 30. The consulting program application is available online here [link no longer available]. A credit union may nominate itself or be nominated by an NCUA examiner. Credit unions selected for the program will be announced in December.

To qualify for NCUA’s consulting assistance, a credit union must fall into one of the following categories:

• Have total assets of less than $100 million;
• Have been chartered for fewer than 10 years;
• Be designated as a Minority Depository Institution; or
• Have a low-income designation from NCUA.

Credit unions not chosen in the first round may apply again in subsequent rounds.

In 2015, 397 federally insured credit unions enrolled in the program, and 27 new credit union organizers received consulting help from NCUA’s Economic Development Specialists. These specialists work with credit unions to address challenges like field-of-membership expansions, strategic planning and new product development.

NCUA’s Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions, minority depository institutions and credit unions with a low-income designation.

El Nuevo Video Popular de la NCUA Sobre Liderazgo Efectivo de la Mesa Directiva ya está Disponible en una Versión en Español

ALEXANDRIA, Va. (Nov. 05, 2015) – Los miembros de la mesa directiva de cooperativas de ahorro y crédito encontrarán valiosa información para ayudarlos a tener más éxito en la versión en español de la serie de videos de la mesa directiva de la Administración Nacional de Cooperativas de Ahorro y Crédito.

La serie de videos en siete partes, diseñados específicamente para los directores de pequeñas y medianas cooperativas de ahorro y crédito, se ha traducido de inglés a español para responder a las necesidades de capacitación de los miembros de la mesa directiva. La primera parte, “Qué debe conocer un director de mesa directiva,” describe los siguientes temas:

• Desarrollo de un programa sólido de control,
• Cualidades de lideres eficaces e ineficases de mesas directivas,
• Evaluación y apoyo del administrador.

La serie de videos, disponible aquí (opens new window) en Internet, también describe estudios de casos que ayudan a los miembros de la mesa directiva a analizar los tipos de problemas de liderazgo que pueden enfrentar en sus cooperativas de ahorro y crédito. La prueba en línea también está disponible en español y permite a los usuarios evaluar lo que han aprendido del video. Ambas versiones de videos en inglés y español otorgan al usuario un certificado de finalización cuando obtienen un puntaje satisfactorio. El resto de los videos de la serie estará disponible a fin de año.

La Oficina de Iniciativas de Cooperativas de Ahorro y Crédito Pequeñas de la NCUA fomenta el desarrollo de las cooperativas de ahorro y crédito y su efectiva dedicación a los servicios financieros para cooperativas de ahorro y crédito pequeñas, nuevas, para instituciones depositarias de minorías y para cooperativas de ahorro y crédito con una designación de bajos ingresos.

ALEXANDRIA, Va. (Nov. 9, 2015) – Credit union managers, staff and boards can learn more about the National Credit Union Administration’s risk-based capital rule and what to expect during its three-year implementation period in a new video released today by the agency.

The video, available here (opens new window), provides a summary of the rule’s framework, the changes that were made during the rulemaking process, and an overview of NCUA’s implementation plan. Credit unions can find additional materials, including an impact analysis and a risk-based capital estimator tool to determine how the rule will affect their operations, on the agency’s Risk-Based Capital resource page.

The rule applies to the 24 percent of federally insured credit unions with $100 million or more in assets.  The 76 percent of credit unions with less than $100 million in assets are exempt from the final rule. The final rule strengthens the safety and soundness of the credit union system by targeting a small number of high-risk ‘outlier’ credit unions that pose a potential risk of losses to the Share Insurance Fund.

NCUA’s Board approved the final risk-based capital rule at its October open Board meeting. The rule becomes effective Jan. 1, 2019, to coincide with the full phase-in of the risk-based capital rules of federal banking agencies.

ALEXANDRIA, Va. (Nov. 10, 2015) – The video recording of the October 2015 open meeting of the National Credit Union Administration Board is now available on the agency’s website.
Archived videos of past Board meetings may be viewed here, and each video remains on the site for one year.

The October open Board meeting’s agenda consisted of four items:

• A final rule to modernize the risk-based capital requirements for complex credit unions and better protect the credit union system, shield the National Credit Union Share Insurance Fund from losses and fulfill NCUA’s statutory obligations;
• A proposed rule to provide a measure of regulatory relief by giving federal credit unions more choices when investing in bank notes;
• Revisions to the agency’s delegations of authority that will streamline the process for granting or amending community charters that involve a population of more than one million; and
• A briefing by the Chief Financial Officer on the performance of the Share Insurance Fund, which had a net income of $40.9 million through the first three quarters of 2015.

NCUA posts these videos as part of the agency’s ongoing efforts to provide transparency and to allow those unable to attend Board meetings the opportunity to become better informed. An interval between the meeting and posting is necessary for the videos to comply with Section 508 of the Rehabilitation Act for the hearing and visually impaired.

The Board Actions page of NCUA’s website has more information, including Board agendas, which are posted at least one week in advance of each open meeting, copies of Board Action Bulletins, which summarize the meetings, copies of Board memorandums and other documents.

Nov. 10, 2015

The Federal Financial Institutions Examination Council (FFIEC) members today issued a revised Management booklet, which is part of the FFIEC Information Technology Examination Handbook (IT Handbook).

The Management booklet, including the examination procedures, has been substantially revised. The booklet outlines the principles of sound governance and, more specifically, information technology (IT) governance. The booklet explains how IT risk management relates to enterprise-wide risk management and governance.

The updated examination procedures assist examiners in evaluating the following areas:

• IT governance as part of overall governance in financial institutions.
• IT risk management as part of  enterprise-wide risk management in financial institutions.

Other relevant changes include:

• Incorporation of cybersecurity concepts as part of information security.
• Incorporation of management-related concepts from other booklets of the IT Handbook.
• Augmentation and further delineation of the stages of the IT risk management process, including risk identification, measurement, mitigation, monitoring, and reporting.

The IT Handbook is available at http://ithandbook.ffiec.gov/it-booklets/management.aspx (opens new window).

ALEXANDRIA, Va. (Nov. 12, 2015) – Hispanics are the largest minority group in America, and credit unions seeking to improve service to Hispanic members will find helpful information during an upcoming panel discussion hosted by the National Credit Union Administration.

The event, “Unique Challenges and Opportunities Serving Hispanic Credit Union Members,” will be held Tuesday, Dec. 1, from 2 p.m. to 3:30 p.m., Eastern, at NCUA’s Central Office, 1775 Duke Street, Alexandria, Virginia.

“This will be an important conversation, with significant ramifications for the future of the credit union system and the nation’s largest minority population,” NCUA Board Chairman Debbie Matz said. “Hispanics make up 16 percent of the nation’s population, representing both a large market for affordable financial services credit unions can provide and a source for future credit union leaders. Diversity promotes a stronger society and a stronger credit union system that better serves communities. I would encourage credit union stakeholders who are interested in this issue to join this discussion.”

Online registration is available here (opens new window). Seating is limited to the first 100 registrants. There is no charge.

William Myers, Director of NCUA’s Office of Small Credit Union Initiatives, will moderate the discussion among a panel of experts to discuss the opportunities credit unions have to better serve Hispanic members, the challenges that accompany those opportunities and strategies for credit unions that want to strengthen their outreach to these members. Panelists will be:

• Miriam De Dios, chief executive officer of Coopera, a consulting firm specializing in reaching Hispanic audiences;
• Maria Martinez, president and chief executive officer of Border Federal Credit Union and co-chair of the Network of Latino Credit Unions and Professionals;
• Robert Peterson, president and chief executive officer of One Source Federal Credit Union; and
• Sergio Osuna, a supervisory examiner with NCUA’s Region V office.

A brief question-and-answer period will follow.

The panel discussion is organized by NCUA’s Office of Minority and Women Inclusion and the Office of Small Credit Union Initiatives.

Portal will Streamline Complaint Process; Use is Voluntary; Registration Required

ALEXANDRIA, Va. (Nov. 12, 2015) – Credit unions can now resolve consumer complaints more efficiently through the National Credit Union Administration’s Consumer Assistance Center online portal, the agency announced today.

Credit unions can now use the portal, located on NCUA’s MyCreditUnion.gov (opens new window)site, to receive correspondence from the Consumer Assistance Center about complaints concerning them, to send responses and complaint information, and to check the status of complaints concerning their institutions that were filed with the Consumer Assistance Center since Aug. 24, 2015. Information contained within the portal is not accessible by the public.

To help credit unions with questions about the Consumer Assistance Center portal, NCUA has created a series of frequently asked questions (opens new window) available on the agency’s website.
Using the portal is voluntary; however, registration is required. Credit unions that want to use the portal must request access by emailing the Consumer Assistance Center at [email protected].

The email requesting access must be sent by the credit union’s chief executive officer—or its senior manager, if the credit union does not employ a chief executive officer—and must include the chief executive officer’s name, work email address and work telephone number. The registration verification process will take NCUA between 10 and 15 business days to complete. Once the verification process is complete, credit unions that have sent registration requests will receive confirmation from the Consumer Assistance Center, at which point they will be granted portal access.

The Consumer Assistance Center has implemented new complaint resolution procedures that improve and streamline how the agency handles consumer complaints involving federal consumer financial protection laws and regulations. NCUA informed federally insured credit unions about these improvements in a Letter to Credit Unions in June.

Under the new complaint handling procedures, a complaint filed with the Consumer Assistance Center involving a federal consumer financial protection matter will be sent to the credit union, which will have 60 days to resolve the problem directly with the consumer and inform the agency of the outcome. If the complaint remains unresolved, the Consumer Assistance Center may begin its own investigation to determine compliance with federal consumer financial protection laws and regulations.