Roles & Responsibilities

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.

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 CEO’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