It Might Make Sense to Outsource Your Compliance…and Audits
in Blog

By: Nicola Foggie, NJCUL Senior Vice President, Compliance and Regulatory Affairs

Making the decision to outsource some, or all, your credit union’s compliance and audit work, is no easy task. Looking inward, you may realize that your internal staff does not have the time, resources, or ability to efficiently manage the work it takes to keep up with regulatory changes to ensure the credit union remains in compliance.  Let alone be proactive about the process!  It can also be difficult to find a third-party vendor you feel confident in, particularly in this day and age of enhanced regulatory scrutiny and risk of cyberattacks.

After weighing all of your options, outsourcing compliance and audit work may be the best business decision. In many cases, vendors who specialize in compliance and audits have the staff and resources to dedicate 100% of their time to your needs. Often at a less expensive rate than your team can accomplish in-house as the third-party bears the cost of salary, benefits, expertise and training of the consultant.

If you've decided to take the next step and work with an outsourced compliance or audit consultant be sure to do your due diligence:

  • Have an open discussion with the proposed provider to appropriately scope out your needs of the work required;
  • Involve stakeholders at the credit union in the discussion;
  • Request a proposal/agreement in writing that includes the deliverables and pricing for the work;
  • Do ask for references; and
  • Also, ask about the skills and certifications (if required), of the staff assigned to perform the work.

The due diligence effort will go a long way to give you confidence that you can trust your new partner to fulfill your compliance and audit needs, so you can return your focus to servicing your members and growing the credit union.

The New Jersey Credit Union League offers compliance consulting services and audit solutions to fit every size credit union’s need. Want more information, click here to read about these, and other NJCUL credit union solutions. Or, contact Nicola Foggie at nfoggie@njcul.org.