In March, the National Credit Union Administration (NCUA) issued a supervisory letter that provides an updated list of Compliance Risk Indicators (see Appendix A, page 4) which are a part of NCUA’s Risk-Focused Examination program. Also, enclosed in the letter is the updated AIRES questionnaire for Compliance Risk. The guidance in this document applies whenever field staff evaluates compliance risk in a federally insured credit union.
Field staff were instructed to begin using the updated list of Compliance Risk Indicators for any supervisory evaluations of Compliance Risk on or after March 31, 2017.
The updated list of Compliance Risk Indicators builds upon the current set of indicators and provides additional guidance for field staff in assigning the compliance risk rating – one of the existing seven risk categories in the Risk-Focused Examination program. The update reflects transformations in technology, business models, and members’ banking habits since the list of Compliance Risk Indicators were originally developed in 2002. The update results in a more comprehensive, integrated and transparent framework in evaluating a credit union’s ability to manage its risk of violations and non-compliance with applicable laws and regulations.