And it is this culture that will be key to the long term success of both individual credit unions and the sector as a whole. Effective governance and risk management better enable firms to take appropriate risks and be sustainably successful. The Central Bank’s Credit Union Supervisory Commentary reports7 have continued to highlight weaknesses in these areas, which need to be addressed.
We will shortly publish the findings of a thematic review undertaken on the maturity of risk management frameworks in credit unions and I urge credit union board members and managers to consider the findings, that will be set out in the report, to support them in enhancing and embedding their risk management frameworks to ensure they can identify and mitigate evolving and emerging risks.