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Director Resources

Roles & Responsibilities  |  Live & On Demand Trainings  |  Additional Resources


The Board of Directors plays a crucial role in establishing the overarching direction of the credit union. This rarely requires direct involvement in the day-to-day operations since that job falls to the President/CEO that the board hires. The credit union staff implements the policies that their board sets. The primary responsibility of the Board of Directors lies in charting the strategic path. 

In essence, the board is tasked with steering and overseeing the credit union, ensuring it operates in a financially sound and judicious manner, with decisions consistently aligned with the best interests of the members. The Credit Union Board of Director’s Handbook includes a sample position description outlining the director’s responsibilities in the following manner: contains a sample position description for the board of directors that breaks the director’s job down as follows:

  • Establish policy guidelines
  • 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

  • Alignment with Credit Union Philosophy
  • Member-Centric Focus
  • Ethical Decision -Making
  • Governance knowledge
  • Understand basic financial statements
  • Strategic Thinking and Planning
     

  • Collaborate with the CEO and fellow board members to formulate objectives and goals for the credit union, including strategic plans
  • Ensure adherence to pertinent laws, regulations, and sound business practices safeguarding the credit union’s compliance and ethical conduct
  • Maintain vigilance over the credit union’s assets and protect 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, participate in the hiring process and assess progress in achieving established goals and objectives.
  • Participate in monthly board meetings, exercise judgment independently from the CEO and communicate to the members at the annual meeting
     
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