Roles & Responsibilities

Role of the Board

The role of the Board of Directors is to act as a policy Board by providing effective governance and stewardship, leaving management to run the day-to-day operations of the credit union. There are five key responsibilities of the Board:

  • Establish strategic direction and regularly review the direction to ensure it responds to the changing business environment in which the credit union operates.
  • Hire and delegate authority to the President and CEO.
  • Monitor performance.
  • Communicate with members and other stakeholders.
  • Monitor and ensure appropriate and effective governance of the credit union.

Responsibilities of the Board

In order to ensure that the Board fulfills its policy Board role and is in a position to be held accountable by its members for good governance and the achievement of member value, the Board:

1. Establishes strategic direction and performance expectations

Based on the best interests of the credit union and the determination of member expectations for performance, the Board of Directors develops broad strategic direction and establishes the credit union’s vision and mission against which performance will be measured. This includes:

  • Approving both long-term and short-term corporate vision and strategies to maximize member value.
  • Reviewing and approving strategic plans to ensure they are consistent with long-term and short-term vision.
  • Setting annual and long-term targets against which to measure the credit union’s performance.
  • Approving the credit union’s Confidentiality and Code of Conduct policies.

2. Hires and delegates authority to the President and CEO

The Board hires and delegates to the President and CEO the authority to manage and supervise the business of the credit union, including the making of all decisions regarding the credit union’s operations that are not specifically reserved to the Board under the terms of the Delegation of Authority policy. The Board determines what, if any, executive limitations may be required in the exercise of the authority delegated to management, and in this regard approves operational policies within which management will operate, including the investment and lending policies. The Board establishes effective mechanisms for annually evaluating the President and CEO’s performance.

The Board ensures there is a President and CEO succession plan in place that includes a plan for emergency succession.

3. Monitors the credit union’s performance

The Board monitors the credit union’s performance, including financial performance, against both short-term and long-term strategic plans, annual performance targets, compliance with Board policies and the effective management of risk. The Board is responsible for ensuring that management achieves and maintains a healthy and effective workplace.

4. Communicates effectively with members and stakeholders

The Board ensures that effective communication is in place between the credit union (including the Board) and the credit union’s members, other stakeholders, and the community. The Board is responsible for reporting to the members regarding the credit union’s direction and performance.

5. Monitors and ensures effective governance

Consistent with the Board policy model, the Board ensures the effective governance of the credit union by establishing a comprehensive set of Board policies to guide the credit union’s business and delegate authority to management, and by annually monitoring compliance with the Board policies.

The Board approves policies and procedures relating to effective governance, the conduct of its business and the fulfillment of the responsibilities of the Board. This includes governance policies related, but not limited to:

  • The conduct of Directors
  • Compliance and board meeting procedures
  • Board agenda formulation
  • Director recruitment, evaluation and selection
  • Director orientation, assessment, and training and development
  • Evaluation of board performance
  • Board committee formation and membership, management reporting