The Board of Directors is tasked with setting the overall direction of the credit union. This rarely requires direct involvement in the day-to-day operations since that job falls to the credit union manager or CEO that the board hires. The credit union staff implements the policies that their board sets.
A Director’s Responsibilities
Generally speaking, the board’s job is to set direction for and control the credit union, making sure it is operated in a sound and prudent manner and that all decisions are guided by the best interests of the members. The Credit Union Board of Director’s Handbook contains a sample position description for the board of directors that breaks the director’s job down as follows.
Primary Responsibilities
- Set policy
- Plan the credit union’s course
- Make sure the credit union maintains its sound financial condition
- Keep communication open to educate members on services
- Review the chief executive officer’s progress in achieving goals and objectives
- Report to the members at the annual meeting
Necessary Knowledge and Skills
- An understanding of credit union philosophy and the desire to better the financial lives of members
- The ability to understand basic financial statements
- The ability to think and plan strategically
Specific Responsibilities
- Work with the CEO and the board to develop objectives and goals for the credit union, including strategic plans
- Make sure the credit union adheres to pertinent laws, regulations, and sound business practices
- Make sure the credit union maintains sound financial conditions and that the credit union’s assets are protected against unauthorized or illegal acts
- Designate depositories, authorize borrowing and investing, provide for bonding and other security factors, including internal control policies and procedures
- Approve interest rates, dividends, and refunds, or approve policies to guide management in doing so
- Approve loan limits and savings minimum
- Develop personnel policies, or make sure they are developed, and then approve them for all credit union programs and activities
- Review policies and bylaws at least one a year and update as necessary
- Make sure new products and services are developed as needed
- Approve the credit union budget
- Define the scope of the CEO’s job, hire someone to fill the position, and review his or her progress in attaining goals and objectives
- Attend monthly board meetings, exercise judgment independently from the CEO, and report to the members at the annual meeting
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