NCUA's Focus On Corporate Governance
Episode description
https://www.linkedin.com/in/mark-treichel/
Guest Speakers:
- Todd Miller
- Steve Farrar
Key Topics Covered:
1. Definition of Corporate Governance
- Set of processes, customs, policies, and laws affecting how a corporation is directed and controlled
- Structure of rules, practices, and processes that determine corporate culture
- Board responsibility for setting corporate culture
2. Resources for Directors
- NCUA has limited specific resources on corporate governance
- FDIC resources recommended:
* Pocket Guide for Directors
* 2016 Supervisory Insights
* Proposed guidance for larger institutions
* YouTube video on corporate governance
3. Key Board Responsibilities:
- Setting appropriate tone and corporate culture
- Approving and overseeing strategic planning (3-5 year outlook recommended)
- Establishing and approving policies
- Creating code of ethics
- Providing active oversight of management
- Selecting qualified executive officers
- Ensuring ongoing director training
- Conducting board self-assessments
- Overseeing compensation and performance management
4. Important Considerations:
- Board composition and diversity of skills/backgrounds
- Documentation of strategic plan changes
- Importance of independent but cooperative relationship with management
- Training and self-assessment requirements
- Three lines of defense in risk management:
* Frontline units
* Independent risk management
* Internal audit
Notable Quotes:
"By and large, directors are very dedicated and do a very good job of keeping our system safe and sound." - Todd Miller
Resources Mentioned:
- FDIC Director's Resource Center
- NCUA Required Policies List
- Quantum Governance (board training resource)