The Division of Credit Unions (DCU) specialty exams section is getting a tune-up to ensure two of its most important programs run smoothly and at peak efficiency in the future.  First, DCU has recently created a new commercial lending training program to train three financial examiners to be subject matter experts.  Second, DCU is reevaluating its IT security exam processes to make its exams more useful, effective and efficient.

Commercial Lending SME Training Program

The Division decided to develop a formal subject matter expert (SME) training program.  After careful consideration of what a robust Member Business Loans (MBL) exam program needs to include, the SME training program was developed and is now being implemented.  The plan is comprised of training courses and mainly on-the-job training.  The plan includes the following three commercial lending examination parts:

  • Overall Program Review – Evaluates the credit union’s overall commercial lending program’s effectiveness by examining 12 of its most important components;
  • Commercial Loan File Review – Focuses on the safety and soundness and the underwriting of the individual commercial loans; and
  • Reconciliation of the Information and Findings from the Two Reviews - The examiners effectively communicate the exam results and any areas that could be strengthened to credit union management.

IT Security Exam Program Build-out

DCU IT security examiners and the specialty exams management team have been reviewing the IT security exam processes, procedures and exam tools (questionnaires) from top to bottom to make them more meaningful and effective.  One of the major program changes is using the InTREx CU program for performing IT security exams.  InTREx CU is an integrated IT security exam software program, which was patterned after the FDIC version of InTREx that was customized for credit union IT examinations.  Use of the InTREx CU program will help create better continuity, less duplication, more consistency and more comprehensiveness in DCU’s IT security exam process from year-to-year.  A new focus area is examining whether a credit union’s use of remote access for employees is well managed and effectively reduces cybersecurity risks.  This is particularly important with the dramatic increase of remote work due to the COVID-19 pandemic.

In addition to these changes, all of DCU’s examiners have done a remarkable job of being flexible and successfully performing remote/offsite exams.