Credit unions have been grappling with staffing challenges and high turnover rates for the past decade.
According to a 2024 study by Wipfli, recruitment and retention were major concerns for 46% of credit unions surveyed. The gap in governance, risk, and compliance (GRC) talent is particularly noticeable, with many reporting significant disruptions due to extended vacancies and departures, according to ViClarity.
The demand for compliance analysts is expected to increase by 6% between 2018 and 2028, making the competition for skilled professionals even fiercer. Fortunately, credit unions hold a competitive edge in hiring for GRC roles, thanks to a mission-driven culture and smaller size, which allows for quicker, impactful changes.
To minimize disruptions in GRC management, credit unions must prepare for inevitable staff changes, especially in key roles that ensure the organization’s safety and integrity. Establishing a strong succession plan is crucial for maintaining stability.
In the event of a vacancy in the Chief Risk Officer (CRO) role, credit unions face the loss of strategic risk management oversight and a vital link to the board of directors. To address this, policies should encourage cross-functional training to equip other roles with CRO responsibilities, ensuring continuity in leadership and oversight.
Similarly, the departure of a risk manager can significantly affect daily enterprise risk management operations. Introducing regulatory technology (RegTech) can support risk management by automating monitoring and reporting processes, thus safeguarding against potential threats such as increased high-risk loans or defaults.
The role of a compliance manager is central to ensuring regulatory compliance across all units. Rarely included in leadership continuity strategies, this oversight needs rectification to prevent significant disruptions. Integrating the compliance manager role into the overall succession planning is a proactive step toward continuity.
The loss of a Bank Secrecy Act (BSA) Officer can lead to serious compliance failures. Establishing relationships with external BSA compliance experts can provide a fallback option, ensuring that critical functions are maintained without interruption.
The internal auditor, as a key part of the compliance structure, provides essential checks and balances. Their absence can jeopardize regulatory examinations. Promoting a compliance-focused culture where every employee understands and adheres to regulatory requirements can mitigate the risks associated with temporary vacancies.
Credit unions must view the inevitable turnover of GRC leadership not just as a challenge, but as an opportunity to reinforce their commitment to member welfare and organizational stability. By proactively developing and implementing robust procedures for leadership transitions, credit unions can transform potential disruptions into manageable and even beneficial changes, ensuring the long-term resilience and success of their operations.
Originally published in Credit Union Times on February 3, 2025.
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