Why Boards Must Lead on Cybersecurity
As cyber threats grow in sophistication and frequency, the role of credit union boards is undergoing a critical transformation. No longer can cybersecurity be siloed within IT departments—it’s now a boardroom-level responsibility. The National Credit Union Administration (NCUA) has made this clear in recent guidance, stressing the need for informed, cyber-aware boards to safeguard institutional integrity and member trust.
This is not just a compliance issue; it’s a governance issue.
Cybersecurity risks are not hypothetical—they’re real, present, and costly. From ransomware attacks to data breaches, the financial and reputational stakes are high. Credit unions, in particular, face a unique blend of challenges: tight budgets, evolving technology stacks, and a strong obligation to protect members’ personal and financial data.
Board-level engagement is essential for four key reasons:
1. Risk Mitigation
Understanding the evolving threat landscape helps boards steer their institutions away from vulnerability and toward resilience.
2. Regulatory Readiness
Boards must ensure their institutions meet NCUA expectations and align with broader regulatory standards in cybersecurity governance.
3. Strategic Direction
Cyber-aware boards are better positioned to guide long-term strategy, resource allocation, and investment in cybersecurity infrastructure.
4. Member Trust
Demonstrating proactive cybersecurity oversight builds confidence among members and the public, reinforcing the institution’s credibility.
Assessing Board Readiness: A New Kind of Audit
While many credit unions acknowledge the importance of board-level cybersecurity oversight, few have a clear view of their current preparedness. That’s where independent assessment becomes invaluable.
An effective cybersecurity governance assessment should include:
- Board Interviews to gauge awareness and understanding of cyber risk.
- Policy and Procedure Reviews to identify gaps in current governance frameworks.
- Customized Training to equip board members with the knowledge they need.
- Strategic Reporting to outline actionable improvements in oversight practices.
Independent Insight Matters
Bringing in an independent third-party specialist adds valuable objectivity to the cybersecurity governance process. Experienced consultants can provide more than just compliance checklists—they deliver strategic insights that are tailored to the unique needs and culture of each credit union.
Across the industry, one thing has become clear: cybersecurity governance is no longer optional. It’s a core competency for modern financial leadership.
The Path Forward
Credit union boards have a responsibility—and an opportunity—to lead from the front. A cyber-aware board isn’t just better prepared to respond to incidents; it’s better positioned to prevent them.
As the regulatory and threat environments continue to evolve, now is the time to assess, educate, and empower your board to meet the challenges ahead.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
