By Lisa Hochgraf
I have to say that when I first saw "Forced Board Training?" was the headline on the most recent NAFCU Compliance Blog post, I wondered if maybe some credit unions were feeling like the pending rule on director education (see posts about it here and here) might be just another requirement that they'll have to follow.
So I was pleased (and not really that surprised) when Anthony Demangone, NAFCU's director of compliance and chief blogger, suggested that directors unwilling to go to training pose a bit of a problem for their credit unions.
"Directors who, for whatever reason, do not want to attend training events, put the credit union at risk," Demangone wrote. "They'll make uninformed decisions, and their spot on the board will not contribute in any way to oversight, risk management, and corporate governance."
The post goes on to describe the aspects of NCUA Legal Opinion Letter 95-0207 that allow boards some leverage in getting individual directors to go to training. Read the details in Demangone's fine post.
Having recourse is certainly a good thing. However, in our experience here at CUES, director development works best when it is ongoing and integrated into the board's culture, not "forced."
What does your board do to promote a culture of continuous learning?
Lisa Hochgraf is a CUES editor.
Get a 30-day free trial of CUES' new Center for Credit Union Board Excellence, a great way to start to instill a board culture of continuous learning about governance, strategy, finance, CEO relations, risk management, committees and advocacy.
