At the Core
17 December 14

Credit Unions and Catastrophic Act Preparedness – Are you compliant with Parts 748 and 749?

Businesses in every line of work have a need for disaster recovery resources that can help them salvage their data in times of crisis. If a disruptive event such as a thunderstorm does significant damage to a company's vital files, it's always going to be a serious situation that demands immediate attention.

This is perhaps most notable when it comes to credit unions. While everyone should care a great deal about their available disaster options, this is an especially salient issue with organizations that handle people's money and their confidential financial information. When this delicate data leaks out in the ether, it's essential that the responsible parties are able to recover it quickly without it being lost or placed into the wrong hands.

To better understand the issues in play here, it's worthwhile to understand both the regulatory landscape surrounding credit unions and the steps that these organizations can take to keep their customers' data safe. Their future depends on it.

A complicated regulatory picture
One of the reasons that it's so difficult for credit unions to recover people's data is that the regulatory climate is convoluted and difficult for these organizations to decipher. National Credit Union Administration (NCUA) provisions relating to disaster recovery dictate that, in the event of a catastrophic act, credit unions must be prepared to provide vital services for their members within two business days.

"In the event of a catastrophic act, credit unions must be prepared to provide vital services for their members within two business days."

This is an extremely tight window. Furthermore, the NCUA mandates that this entire process for recovering data must be carefully documented, that all relevant employees must be trained and that testing of these procedures must be performed annually.

It's also worth noting that it doesn't take much for these rules to take effect. The NCUA defines a "catastrophic act" so as to include any event, natural or otherwise, that causes an interruption lasting more than two business days. Such a catastrophe could happen at a moment's notice – it might come in the form of a weather-related event or a simple technical malfunction with an organization's servers.

In order to be fully prepared for any potential catastrophe that may come their way, credit unions must fully brief all staff members, including paid employees and volunteer officials, about disaster recovery procedures. If vital records are lost or destroyed, everyone needs to be prepared to take action quickly.

Why preparedness is key
It's obvious, therefore, that it's vital for organizations to be prepared for disaster recovery scenarios. Catastrophes can lead to not only serious damage to consumers' trust and loyalty, but also legal trouble, so it's clear that credit unions must be on their toes.

To this end, it's worth noting that Virtacore makes a valuable business partner for credit unions seeking help with disaster recovery. Virtacore is proud to offer free Catastrophic Act preparedness and compliance review to all credit organizations that need it. If your business isn't compliant yet, it needs to be, and Virtacore can help you reach that goal quickly and painlessly.

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