Rochdale's Approach to Enterprise Risk Management (ERM)
No two credit unions' profile or business culture is the same and while each ERM program will follow the same basic processes, each must be tailored to the strategy and culture of the specific organization. We vehemently believe that, if done right, ERM produces tangible financial and cultural benefits with little cost or administrative effort. However, we have found that many credit unions are being misguided in their approach to ERM. Rather than audit- or controls-based like many other ERM programs, Rochdale focuses on business risks, which have influence on the organization's financial performance and long-term competitive position. Rochdale's ERM program focuses on implementing an ERM process, balancing qualitative and quantitative information, stressing board management and staff involvement, and reporting to put necessary information in the hands of decisions makers at the times needed to support business strategies.
Our mission at Rochdale is to "assist credit unions in maximizing member value by thinking and acting strategically and executing with operational and technical expertise." Our core belief is that only through credit union success do we succeed. Our ERM program is designed with that core belief in mind.
Our ERM methodology and software solution is described below:
• A credit union must focus on the development of an effective ERM program, which in its most simple form, provides a comprehensive view of organizational risk, allowing for enhanced decision-making.
• In practice, Rochdale's ERM program assists credit unions in attaining the information necessary to optimize their allocation of resources, all in an effort to maximize the achievement of strategic business objectives.
• The program provides an efficient and standardized process through which credit union decision makers can acquire both existing and emerging risk information, allowing the credit union to position itself to take advantage of market opportunities.
• Rochdale's web-based ERM Director software serves as an extension and facilitator of the credit union's ERM program, maximizing the value of the program by drastically simplifying administration, while minimizing costs and resources typically associated with maintaining an ERM program.
• ERM Director was built based on a wide array of experience with credit union ERM programs by seasoned veterans who understand the challenges faced by credit unions.
An effective ERM program can be the difference as to whether your credit union continues to build competitive advantage or suffers the painful surprises of lost opportunities and organizational setbacks. We firmly believe that you will find strategic and financial benefit many times over in partnering with Rochdale on this important endeavor.