A Direct Line Blog

By Donya Parrish, MCU VP Risk Management

In 2022, the CUNA Compliance & Risk Council put out a white paper, “Being on the Board: An Exploration of Governance,” that addressed several important governance topics. There has been a lot of discussion lately on board succession planning, so one chapter in particular caught my attention. It provided a list of personality traits that would make effective directors and suggested they should be your focus when you have to pursue replacement directors.

I have heard it stated many times in board succession conversations that “We need to find a (insert CPA, IT expert, HR professional, etc. here) person,” without realizing they may not have the traits you really need for your strategic focus. Instead, look to recruit the traits they might bring to your board and enhance your group that way. Are they a strategic thinker? Is change management a skill of theirs? Below is the list that the white paper suggested. It is a great place to start!

“To identify excellent candidates, the nominating committee must have clear direction regarding the desired composition of the board, the skills and experience needed in new members, and an understanding of the personality traits that would be effective on the board, such as:

• Visionary outlook
• Strategic thinking
• Leadership skills (prior board experience is ideal)
• Sound knowledge of the financial industry
• Financial/business acumen
• Regular participation in meetings and committees
• Participation in discussions must be high-level and strategic
• Diplomatic
• Awareness and appreciation for organizational culture
• Risk-aware (not necessarily risk-averse)
• Strong sense of commitment
• Mission-oriented
• Understanding or being willing to learn about the regulatory governing bodies
• Good communication skills
• Voracious reader who can parse through reports and understand them

In addition to the qualities listed above, availability and willingness to serve are perhaps the two most important character traits for new board members.”

Going one step further might be to self-assess your current board and committees for these skills to see what you have and where you may be deficient. Let us know your thoughts and any other traits you think should be on the list! Better yet, take a few minutes at your next board meeting to brainstorm your own list.