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How First Tech Federal Credit Union Transformed Its Risk Culture

The California cooperative transitioned to a centralized platform where risk assessments and controls are woven into the fabric of everyday processes.

Known for its pioneering approach in serving technology companies and their savvy employees, First Tech Federal Credit Union ($16.7B, San Jose, CA) found itself grappling with an all-too-common dilemma: It had a fragmented risk management system that had evolved into a complex ecosystem of disconnected systems mired in spreadsheets and outdated processes.

As this leading U.S. credit union faced the complexities of a rapidly evolving business landscape, its growth-oriented leadership knew it was time for a change — a transformative shift toward a unified, streamlined risk management strategy. This realization marked the beginning of a strategic partnership with Protecht Group, which would reshape its approach to enterprise risk management.

The Catalyst For Change

First Tech, with deep roots in the technology sector, understood innovation was not just about adopting new technologies but optimizing processes to harness its full potential. The credit union’s enterprise risk management (ERM) system, burdened by incompatible tools and manual data entries, was ripe for innovation. The system not only hampered efficiency but also heightened the risk of errors. Each spreadsheet represented a potential pitfall in accuracy and compliance.

Selecting Protecht: A Strategic Decision

The search for a solution led First Tech to Protecht ERM. The system is recognized around the world by both users and analysts for robust functionalities that provide a holistic view of risk and compliance. Protecht stood out with its comprehensive tools for managing risk use cases, designed to provide real-time insights and enhance data integrity. The platform’s user-friendly interface and strong vendor support promised to ease the transition for First Tech’s team, ensuring the new system would be embraced across the organization.

Protecht’s proven success in the financial sector gave First Tech the confidence this partnership could meet the complex demands of its operational and compliance requirements. The decision to choose Protecht was not merely about adopting a new system — it was about embracing a partner that could grow and adapt with the credit union’s evolving needs.

From Fragmentation To Integration

With Protecht, First Tech transitioned to a centralized platform where risk assessments and controls are woven into the fabric of everyday processes. This integration significantly reduced reliance on manual spreadsheets, replacing them with a coherent, secure environment that streamlines data collection and analysis.

One of the most significant enhancements was in Risk and Control Self-Assessments (RCSAs).

“With Protecht, we’ve modeled a very detailed step-by-step RCSA that engages business units directly within the tool, ensuring every step is documented and nothing is overlooked,” says Cary Oswald, Senior Director of Enterprise Risk Management at First Tech.

Likewise, Protecht’s issue management features enabled First Tech to track and resolve issues more efficiently.

“Findings and actions are one of my favorite modules,” Oswald says. “I like how Protecht manages findings and links actions to it. In the previous system, people were accessing and muckraking in the findings all the time. I like the way Protecht thinks about it, a finding is created and closed. All of the actions to fix the finding are done at the action level. That intuitively makes sense to me. That’s like the Holy Grail.”

Cultivating A Proactive Risk Culture

Implementation of Protecht ERM fostered a new risk culture at First Tech, transforming risk management from a back-office function to a front-line necessity. The Protecht platform didn’t just change how risks were assessed — it changed how people felt about their roles in risk management. Employees at all levels became engaged with the process, understanding their part in the bigger picture of the credit union’s health and success. The customizable dashboards and reporting tools provided by Protecht offered a panoramic view of the risk landscape. This enabled quick and informed decision-making that was previously bogged down by manual processes.

First Tech is reinforcing its technology investments with Protecht ERM through Protecht Academy, featuring comprehensive training designed to reinforce risk knowledge that empowers staff to become effective and engaged managers of risk. The credit union’s control owners are now participating in a Protecht Academy eLearning module on best practices for controls assurance.

A Strategic Partnership For The Future

The relationship between First Tech and Protecht has blossomed into a strategic alliance, with ongoing support and regular updates that ensure the system continuously meets the credit union’s needs. This partnership has not only improved operational efficiencies and compliance but also fostered a stronger, more proactive risk culture across the organization.

First Tech Federal Credit Union’s journey with Protecht ERM illustrates the transformative impact of ERM digitalization. This partnership has enabled First Tech to not only navigate the complexities of day-to-day risk management but also pave the way for risk-informed growth and innovation. For credit unions seeking to better leverage enterprise risk management, First Tech’s story with Protecht stands as a testament to the power of strategic partnership and technological advancement in the quest for greater efficiency, accuracy, and resilience.

 

 

For more than 20 years, Protecht has been redefining the way businesses think about risk. Our enterprise risk management platform, Protecht ERM, empowers organizations worldwide to take smarter risks and drive sustainable success. Learn more at protechtgroup.com.

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
November 11, 2024
CreditUnions.com
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