We’ll get straight to the point: you need a disaster recovery solution for your credit union. And it’s not just because it’s mandated by the NCUA. Your CU’s resilience and continued success is all the more easier to achieve if you have this strategy in place.
Disaster recovery involves practices, policies and tools that work toward continuing operations in the event of a man-made or natural disaster. This business strategy helps to mitigate damage and assist with recovering from the incident.
The recent years have been challenging for credit unions across the country. Natural disasters such as wildfires and hurricanes have taken their toll on American citizens and businesses. Your credit union needs a plan to recover from one if it happens.
Read on to learn 3 reasons why your credit union needs disaster recovery solutions:
If your credit union is handling a disaster, chances are high that your members are dealing with the same. During emergencies, easy access to critical services and most importantly, their money, is of the highest priority to members.
If your credit union is caught unaware when a crisis occurs, members are likely to lose confidence and leave for an alternative institution that can better ensure the safety of their finances.
The NCUA has strict sanctions for credit unions who don’t follow regulations
According to the NCUA, all credit unions have to test their disaster recovery solutions at least once a year (source). They require credit unions to have a working disaster recovery plan or system in place, and failure to keep one would lead to strict regulatory action.
Crucial data might be lost in the event of an actual disaster
While your credit union can recover from lost members or a sanction from the NCUA, it’s very likely that you won’t be able to recover from a true disaster.
Without a comprehensive credit union disaster recovery strategy, you can lose a large amount of significant and crucial data. Without data and records, your credit union could be permanently affected.
The Value Of Cloud Storage In Disaster Recovery Strategies
In the past, credit unions primarily stored their data using on-site storage and in remote branch facilities. This practice carries significant risks because data is stored in just one physical location.
With cloud storage, data is much safer from the majority of all disasters. If you’d like to learn more about how disaster recovery can ensure business continuity, our experts will be happy to speak with you!