What?
What are internal controls?
Internal controls are the policies and procedures organizations use to make sure everything runs correctly.
Why are internal controls important?
Internal controls are important because they protect our members, our organization, and our employees.
Who does responsibility for internal controls start with?
Management
What is the COSO internal control model?
A framework that helps organizations build strong controls.
Why is risk assessment important?
It helps us stay proactive instead of reactive?
What do internal controls mean for the credit union?
Making sure we’re handling members’ money responsibly, following regulations, and keeping our operations running smoothly
What do internal controls prevent?
Errors and Fraud
Who is involved?
Everyone
What are the five components?
control environment, risk assessment, control activities, information and communication, monitoring
What does it mean for the credit union?
Identifying risks in handling accounts or member information
How are internal controls more than just rules?
They’re habits and behaviors that employees learn and practice every day.
What do internal controls support?
Decision-making and Consistency
What are leaders responsible for?
Setting expectations and creating a strong environment.
Which component involves reviewing and improving processes over time?
monitoring
What should training and development encourage employees to do?
think critically and ask questions