INFORMATION PROCESSING ISSUES
For your reference I am enclosing papers from the Federal Financial Institutions Examination Council (FFIEC) which outline issues and risks associated with certain computer operations.
Credit unions will continue to benefit from "distributed" processing systems if proper controls are set up, as suggested in one of the papers. Likewise, large-scale integrated systems (LSIS) are becoming more common and also require proper controls, as indicated in another paper.
Guidelines for contingency planning are also included here. Each board of directors should ensure that a comprehensive contingency plan is put in place and tested regularly. Because such planning has become crucial to credit union operations, contingency plans and test results will be reviewed and evaluated during future supervisory examinations.
For the National Credit Union Administration Board,
ROGER W. JEPSEN