Exponential credit union growth brings a wave of new problems—primarily, audit departments aren’t growing at a proportionate rate to the increase in new responsibilities. There isn’t enough time or staff to meet compliance demands, and credit unions collectively face bigger problems as a result.

That’s where the Audit Efficiency Matrix comes in—Redboard’s proprietary tool that helps credit union auditors identify core issues to tackle them in realistic, impactful ways, ultimately resulting in more compliance work handled in the same amount of time. 

Audit teams aren’t doomed just because credit unions are growing. But it wouldn’t hurt to get clarity around where things are now, what needs to change, how to change it, and what’s needed to make it happen.

Causes of an Inefficient Audit System

To make meaningful change, credit unions must first identify which issues are affecting their ability to complete audit and compliance tasks. What’s causing the impact to the organization? Why aren’t necessary tasks getting done?

According to the credit unions we’ve partnered with, there are a handful of common issues that affect most of the industry:

• Lack of bandwidth,
• Outdated processes,
• Frustrated business units,
• Late findings, and
• An overwhelming audit backlog.

All the above keep organizations from reaching their goals. These are the root causes of most of the following symptoms:

Symptoms and Impacts of Inefficiency

The causes mentioned above can result in incredibly disruptive impacts to the credit union, such as strategy and member-facing work.

There are more serious implications at play here, too.:

Symptoms of inefficient audits include repeat and unresolved findings, increased regulatory scrutiny, and dreaded DORs. (Other symptoms include missed communications and frustration.)

Lack of bandwidth and frustration can exacerbate an already severe problem with staffing as talent gets burnt out and leaves to seek more sustainable opportunities. It’s a vicious cycle that could dig struggling organizations deeper into a hole if action isn’t taken swiftly and urgently.

Fortunately, even efficient audit departments can find efficiency gains by reviewing their processes. That’s where the Audit Efficiency Matrix comes in.

How the Audit Efficiency Matrix Can Help

The Audit Efficiency Matrix addresses four key components of the efficiency issue:

• Why efficiency is key to making impactful change.
• What issues to tackle for strongest effect.
• How to go about making transformation and the tools needed to help.
• Decisions and the criteria needed to make the most efficient choices.

With these in mind, institutions can create a roadmap to a more sustainable future where growth and compliance to regulations aren’t mutually exclusive.

Learn more about the Audit Efficiency Matrix here: 
https://www.vimeo.com/redboard/audit-efficiency