Strengthening Trust Through Governance

In an era where digital trust is paramount, credit unions and Credit Union Service Organizations (CUSOs) face growing pressure to secure their data, systems, and member relationships. Cybersecurity breaches, third-party risks, and increasing regulatory scrutiny have elevated IT and cybersecurity governance from a back-office function to a board-level concern.

Yet many credit unions—particularly smaller institutions—struggle with translating broad governance principles into actionable frameworks. The good news? Strong governance isn’t just about technology. It’s about accountability, alignment, and enabling smart decisions in an increasingly complex environment.

The Governance Imperative

Governance sets the tone for how IT and cybersecurity decisions are made, who makes those decisions, and how risk is managed. For credit unions and CUSOs, this includes:

• Defining roles and responsibilities among boards, executives, IT leaders, and vendors.
• Establishing strategic alignment between technology initiatives and organizational goals.
• Implementing controls and oversight for data protection, access management, and incident response.
• Regularly evaluating risk through assessments, audits, and metrics that speak the language of business.

Good governance helps credit unions answer tough questions: Are we prioritizing the right IT investments? Are we managing vendor risks appropriately? How do we know our controls are working?

Unique Challenges in the Credit Union/CUSO Landscape

Credit unions and their CUSOs face a distinct governance challenge: they often operate in lean, collaborative environments with limited resources, but have high member expectations. Additional factors include:

• Federated Technology Ownership: CUSOs may serve multiple credit unions, creating complexity in governance boundaries and decision rights.
• Board Diversity: Credit union boards are often composed of volunteers with varying levels of technical fluency.
• Shared Risk Models: Security events at a CUSO can ripple across credit union partners, raising the stakes for governance coordination.

These realities make it critical to build governance frameworks that are pragmatic, not just prescriptive.

Pillars of Strong IT and Cybersecurity Governance

Here are five foundational practices that any credit union or CUSO can adopt today to improve governance:

1.    Establish a Governance Charter: Define clear structures for IT and cybersecurity oversight. Who owns risk decisions? What committees exist? How often do they meet? A simple charter can clarify roles and ensure accountability.

2.    Formalize Vendor Oversight: Third-party risk is a top concern. Maintain a current inventory of critical vendors, conduct periodic risk assessments, and ensure contracts reflect security expectations and response obligations.

3.    Perform Regular Cyber Risk Assessments: These don’t have to be massive undertakings. Focus on the crown jewels (e.g., member data, core systems) and use frameworks like NIST CSF and NCUA’s ACET tool to identify control gaps and prioritize remediation.

4.    Integrate IT into Strategic Planning: Too often, IT is consulted after the fact. Make sure technology leaders have a seat at the table during budget cycles, product rollouts, and member experience discussions.

5.    Educate Boards and Executives: Governance is only as strong as the decisions being made. Equip non-technical leaders with plain-language dashboards, tabletop exercises, and scenario planning so they can confidently steer strategy.

Governance That Enables

Ultimately, the goal of governance is not just protection—it’s enablement. Well-governed IT and cybersecurity programs empower credit unions to innovate responsibly, grow sustainably, and deepen member trust.

Credit unions and CUSOs that invest in governance today aren’t just checking boxes for compliance: they’re building resilience for tomorrow.

Steve Torino, CISM, is Chief Information Security Officer at Synergent.