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Sahar Abdul Zahir Financial AdvisorMutual Funds Investment Specialist
Financial Advisor
Mutual Funds Investment Specialist
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The role of a director
The role of a director of a financial institution in today's environment is demanding, complex, and multi-dimensional. Stakeholders (including regulators) expect and demand more from directors than in the past, and consequently the director's role, although very rewarding, is a challenging one.
Directors of BlueShore Financial bring to the Board a broad range of knowledge and depth of experience, as well as support for the values and focus of the organization. The Board of Directors provides guidance on long-range objectives, oversees risks, determines policy, and monitors the credit union’s progress. Day-to-day operations are the responsibility of Management.
Responsibilities of the Board of Directors
The Board of Directors provides stewardship on behalf of the members and oversees Management. The Board’s principal responsibilities include:
- Establishing Board and committee processes;
- Determining the selection, retention, succession and compensation of the President and Chief Executive Officer; establishing the CEO’s objectives, monitoring progress and conducting regular performance reviews;
- Participating in an annual planning session to approve BlueShore Financial's Strategic Plan and review implementation of that plan; reviewing and approving annual business plans and budgets;
- Understanding the significant risks to which the credit union is exposed and ensuring they are properly managed;
- Monitoring the credit union's progress towards its goals and the actions taken to achieve them; approving any significant new ventures;
- Approving and monitoring compliance with all significant policies, regulations and legal requirements;
- Overseeing timely and accurate reporting to members and regulators of the credit union's performance, financial statements and significant developments;
- Ensuring appropriate code of conduct and conflict of interest policies are in place and adhered to by all Directors and staff, to ensure trust in the organization.
The Board regularly engages an independent third party to evaluate of the performance of Directors, committees and their Chairs, to supplement their own Director self-evaluation. The Board reviews the evaluation report and, as appropriate, implements changes in accordance with report recommendations.
Board Committees
The Board of Directors has standing committees to carry out both legislated and delegated functions. The committees meet regularly throughout the year. In addition to regular updates to the Board of Directors, each committee produces an annual written report confirming that all duties and responsibilities have been completed.
The Audit Committee has oversight responsibility for internal controls and financial reporting, reviews audit procedures and reports arising from audits and examinations. It oversees risk management practices in areas of financial reporting, operations, technology and any other areas that could have the potential to materially affect the health of the Credit Union. The Committee meets directly with the internal and the external auditor, both with and without Management.
The Governance and Conduct Review Committee has oversight responsibility for board governance, including the annual board evaluation process, Director compensation, and periodic review and recommendations regarding BlueShore Financial's Rules. The Committee also monitors compliance with policies governing privacy, conflict of interest, related parties and confidentiality.
The Investment and Loan Committee has oversight responsibility for lending and investment activities in accordance with BlueShore Financial's policies. This includes reviewing and recommending to the Board of Directors changes to policy, monitoring adherence to policy, approving loans that exceed management limits, authorizing write-offs and such other duties prescribed by statute or delegated by the board.
The Nominations and Election Committee has oversight responsibility for the nominations and election of Directors in accordance with the Credit Union's Rules. The Committee reviews all nominees in context of the defined competencies and skills required of Directors, as well as other nomination requirements. Although the Committee may endorse certain candidates felt to best represent the needs of the Board at the time, all nominees who are members in good standing and are eligible to run are presented to the membership.
The Human Resource and Compensation Committee has responsibility for overseeing certain human resource and compensation policies and programs to ensure they support BlueShore Financial's business strategy and good governance. It also assesses the performance of the President and CEO and determines their compensation.
The Risk Committee has oversight responsibility of risk management. The Committee must satisfy themselves that the risk management processes that are designed and implemented by Management are acceptable and aligned with BlueShore Financial’s strategy and the Board’s approved risk appetite and governance frameworks. It has direct oversight of the Chief Risk Officer and utilizes the tools and reporting provided by Management to independently determine the adequacy of Management’s actions to manage risk. Annually, this Committee recommends to the Board, approval of the Risk Appetite Framework, as the primary tool to set the risk boundaries within which BlueShore must operate. The Committee also has responsibility for ensuring the Credit Union’s risk management activities are independent from operational management, adequately resourced and have appropriate status and visibility throughout the organization.
Interested in contributing to your Credit Union?
Contact us if you would like to learn more about what’s involved in serving as a BlueShore Board Director.
Interested in contacting BlueShore's Board of Directors?
You may reach members of the Board via email at: boardofdirectors@blueshorefinancial.com