Industry Experts Share Expertise in McGladreys Credit Union Emerging Risk Alert
MINNEAPOLIS, MN – RSM McGladrey, one of the nation’s leading providers of tax and consulting services under the McGladrey brand, recently published its annual Credit Union Emerging Risk Alert, detailing risks and challenges facing the credit union industry.
“Credit unions have felt the impact of collateral damage from the economic crisis and in times like this, the threat level of many risks increases,” said Mike Mossel, managing director for RSM McGladrey. “While it might seem prudent to focus attention on certain risks, overlooking others due to resource constraints could be painfully detrimental—because the consequences of poorly managed risks are more damaging when bottom lines and net worth are significantly stressed.”
The latest McGladrey Emerging Risk Alert provides a broad and in-depth discussion of the credit union risk environment, with insights on issues ranging from lending and mergers to regulatory compliance and technology. Key findings include:
- In 2011, many of the accounting rules are under review due to ongoing accounting convergence efforts between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB).
- Allowance for loan losses is by far the most significant estimate that enters into determination of a credit union’s earnings.
- The number of credit union mergers increased in 2010, and that trend will likely continue in 2011. The predominant factors driving credit union consolidation is declining capital.
- Credit unions are facing more regulatory changes that ever before including the FACT Act, Regulation Z, the CARD Act, Regulation E and more, so keeping up with changes and requirements can be a challenge.
- Employee dishonesty or internal fraud is on the rise and is a continuous threat to credit unions, regardless of asset size or number of employees. However, measures can be taken to deter and detect it.
- Computer crime is a growth industry, and financial institutions represent a prime target for thieves so information technology security is necessary.
This McGladrey Credit Union Emerging Risk Alert is available for download or by calling 800.274.3978.
McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clients’ business needs. Together, they rank as the fifth largest U.S. provider of assurance, tax and consulting services, with 7,000 professionals and associates in nearly ninety offices. The two firms operate as separate legal entities in an alternative practice structure. McGladrey & Pullen is a licensed CPA firm that provides assurance services. RSM McGladrey is a leading professional services firm providing tax and consulting services. Both firms are members of RSM International, the sixth largest global network of independent accounting, tax and consulting firms. For more information, visit the McGladrey website at www.mcgladrey.com, join our Facebook fan page at McGladrey News and/or follow us on Twitter@ McGladrey.