The OGO Blog

Does My Credit Union Need a Disaster Recovery Solution?

Credit union disaster solution ongoing operations

While credit unions are certainly beset by a large number of rules and regulations, much of the red tape is designed to ensure their continuing success. Simply put, you need a credit union disaster recovery solution. We’ll explore why below.

Disaster recovery is business strategy aligned toward continuing operations in the event of a natural or human-caused disaster. The strategy includes policies,practices, and tools that both mitigate damage and assist with recovery fromthat damage.

Your credit union needs a disaster recovery solution. First, it’s mandated by the NCUA, and second, it’s important for the resilience of your credit union.

Credit Unions Face Disaster, Too

Its been a difficult several years. From the massive hurricanes hammering the east to the wildfires raging across the west, natural disasters have taken their toll on Americans and American businesses. Unless your credit union exists in some part of the world where disasters don’t occur, you’ll need a plan to recover from one.

There are three reasons you need a credit union disaster recovery solution. All three reasons represent an existential risk.

1.     Members leave

If your credit union is dealing with a disaster, chances are good that your members are dealing with the same thing. In emergencies, your members desperately need access to critical services and their money.

If your credit union hasn’t properly prepared for a crisis, your members may lose confidence and leave for an institution that can better guarantee their financial safety.

2.     The NCUA comes knocking

The NCUA requires that all credit unions test their disaster recovery solutions at least annually. They mandate that you have a working disaster recovery system or plan, and failure to keep one would result in strict regulatory action.

(Does your disaster recovery solution tie into your credit union’s business continuity plan? It should!)

3.     Disaster strikes!

This is the direst circumstance. While it’s certainly possible to recover from losing members or getting dinged by the NCUA, it may not be possible to recover from a true disaster.

If your credit union disaster recovery strategy isn’t sufficiently robust, you may lose significant amounts of critical data. Without data, or without branches, your credit union could suffer a mortal blow.

On-Site vs Off-Site Storage

Credit unions in the past have relied on storing their data in remote branch facilities. However, with the NCUA’s involvement, credit unions are reevaluating the efficacy of on-site storage. The practice of storing data in one physical location carries with it considerable risk.

Cloud storage presents a much better disaster recovery solution for credit unions. Data in the cloud is much safer from almost all possible disasters—whereas a single lightning strike might destroy one physical data storage facility, it would require something like the Chicxulub meteorite to threaten a robust cloud disaster recovery solution.

Get a Head Start on Your Credit Union’s Disaster Recovery

If you’re concerned about your credit union’s approach to disaster recovery, you can use our disaster recovery checklist to get started.

If you’d like to learn more about how your credit union can prepare for business continuity or disaster recovery, click here to view related content.

Ready to speak to an Ongoing Operations Disaster Recovery expert today? Fill out the short form below and we will be in touch!