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Simplified NCUA Guidelines for Credit Union Leaders

Security NCUA Guidelines for Credit Unions

As a credit union leader, navigating the intricate regulations of the National Credit Union Administration (NCUA) can seem overwhelming. With compliance requirements constantly changing and expectations ever evolving, it can be hard to stay up-to-date on the NCUA guidelines meant to keep your operation safe and sound.

To help with this process, we’ve put together this guide to help simplify NCUA guidelines for credit union leaders, so you don’t miss any important details when it comes to ensuring the safety and security of your institution’s members. By following this overview, you can ensure that your team is up-to-date and better equipped to meet the standards set by the NCUA.

Engage the Board of Directors

When it comes to protecting sensitive information and data, credit unions need to take every precaution possible. That’s why involving the board of directors in the development and oversight of an information security program is crucial.

Their approval of a written policy and program is just the first step. Board members need to assign specific responsibility for the program’s implementation and regularly review reports from management to ensure its continued success. By involving the board, credit unions demonstrate their commitment to protecting their members’ confidential information and maintaining their trust.

Assessing risk can be a daunting task, especially considering the plethora of internal and external threats that credit unions face in today’s highly interconnected world. The first step in this process is a comprehensive risk assessment. This assessment involves identifying all possible threats, which can range from cyber-attacks to natural disasters.

Once identified, credit unions must assess the likelihood and potential damage of these risks, taking into account the sensitivity of member information. Finally, credit unions must review their current policies, procedures, member information systems and other arrangements, to determine if they are sufficient in controlling these identified risks. When members trust your credit union with their sensitive information, it’s important to take proactive steps to protect member information from potential harm.

Managing and controlling risk is a fundamental aspect of any business, and credit unions are no exception. The credit union must design its information security program to control identified risks, taking into consideration the sensitivity of the information and the complexity and scope of their activities. Each credit union must consider whether the following security measures are appropriate for their operations:

  • Access control on member information systems to authenticate and permit only authorized necessary employees.
  • Access restrictions for physical locations with member information, such as buildings, computer facilities, and records storage.
  • Encrypt data in transit or storage for added layers of protection.
  • Comprehensive personnel background checks to reduce the risk of data breaches caused by employee malicious behavior.
  • Monitor unauthorized access to detect actual and attempted intrusions into member information systems.
  • Response programs with actions to be taken when the credit union suspects or detects unauthorized access, including reporting to appropriate regulatory and law enforcement agencies.
  • Environmental disaster recovery plans to avoid potential destruction or loss from fire, water damage, or technical failures.

After implementing these measures to safeguard member information, credit unions must take additional steps to ensure the information security program is effective. This includes staff training to properly implement the program and regular testing of key procedures. The frequency and nature of these tests should be determined by the risk assessment and should be conducted or reviewed by independent third parties from those who maintain the security programs.

By taking these steps, credit unions can ensure that their information is protected and a safe and secure banking experience for all members.

As a credit union, it’s important to choose the right service providers to maximize the benefits while minimizing any potential risks. This involves a thorough evaluation process to ensure that your chosen providers meet your specific needs and objectives.

Credit Unions must acquire the appropriate services to meet the objectives outlined in these guidelines. Once contracted with a service provider, both parties must contractually agree to implement appropriate measures designed to meet the objectives outlined in these guidelines.

To ensure compliance, credit unions must monitor their service providers, which may involve reviewing audits, summaries of test results, or other evaluations. These supervisory measures are a critical step in protecting against any potential risks and getting the most value from your technology investment.

As technology advances and potential threats to data security evolve, credit unions need to remain vigilant and continuously monitor their information security program. By conducting regular evaluations and making necessary adjustments, credit unions can ensure they are adequately protecting the sensitive information of their members.

In addition, it is crucial to consider changes to your organization, such as updates in hardware, software, or mergers and acquisitions, and how they may affect the security of member information systems. By staying proactive and ensuring your programs are up-to-date on the latest security risks, you can provide peace of mind to both your credit union and its members.

As part of good corporate governance, credit unions are expected to be transparent with their board of directors or the appropriate committee regarding information security. In this report, credit unions should cover the overall status of the information security program and include important details such as the results of risk assessments, compliance, service provider arrangements, and management’s responses to security breaches or violations.

The report should also provide recommendations for changes in the information security program to ensure the organization stays ahead of potential threats. Overall, the report to the board is an opportunity to showcase the security measures and build trust with their stakeholders by demonstrating their commitment to providing secure and safe services.

By implementing these strategies, your credit union can better comply with NCUA guidelines and be well-positioned to meet the high standards set by the NCUA for financial safety and security. Remember: by staying informed and prepared, you will put yourself in the best possible position to ensure success. Contact us to take action now to start putting these strategies into practice!

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Get to know Aaron Lancaster

Aaron Lancaster is a security expert with a history of providing superior cybersecurity solutions to clients in numerous industries. With over 16 years of experience in the cybersecurity field, Aaron brings a wealth of knowledge and experience to the table and holds credentials that go beyond most in the industry.

In his current role as General Informatics’ Information Security Officer, Aaron is responsible for leading General Informatics’ Security Consulting Practice. Prior to being acquired by General Informatics, Aaron served as the CEO and Founder of 1 Ping Security. Aaron is a highly sought-after speaker and is often delivering keynotes to national security conferences. He has attained a vast amount of security certifications and holds leadership roles amongst multiple security associations and alliances.

In addition, Aaron is a veteran of the U.S. Army, having served as a scout reconnaissance helicopter pilot and Information Assurance Security Officer. He earned a Graduate Certificate in Pentesting and Ethical Hacking from the SANS Technology Institute and holds a Bachelor of Science degree in Aeronautics from Embry-Riddle Aeronautical University.

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