In this special archive episode of With Flying Colors, Mark Treichel is joined by Steve Farr and Todd Miller — both former NCUA leaders — to revisit a foundational topic that continues to shape credit union supervision today: risk appetite, risk culture, and concentration risk.

While regulators often emphasize capital levels, history shows that capital alone cannot offset poor risk governance. This conversation explores why concentration risk continues to challenge institutions — even those that appear well capitalized.

Drawing on decades of regulatory experience, the team walks through the core components of a modern risk management framework and discusses how boards should think about oversight in today’s environment.

What We Cover

🔹 Risk Culture Starts at the Top

• Why tone from the board and CEO matters more than policies
• How troubled institutions often trace back to cultural breakdowns
• The board’s role in defining acceptable risk

🔹 Risk Appetite: Limit or Goal?

• What a risk appetite statement actually means
• Why limits must be measurable and monitored
• The difference between qualitative intent and quantitative control

🔹 Concentration Risk in the Real World

• The taxi medallion example and what it taught the industry
• Why 15%+ capital ratios were not enough
• How concentration risk interacts with capital and stress scenarios

🔹 The Three Lines of Defense

• Frontline business units
• Risk management oversight (including the Chief Risk Officer role)
• Internal audit and supervisory committee functions

🔹 Examiner Expectations Today

• Stress testing and concentration limits
• Supporting board-approved limits with data
• What happens when limits are breached
• Why documentation and reporting matter

Key Takeaways

• Capital can absorb losses — but it cannot fix poor diversification.
• Risk appetite should reflect capital strength, strategic goals, and institutional complexity.
• Concentration limits are not aspirational targets — they are guardrails.
• Effective risk management requires culture, measurement, and accountability.

Why This Still Matters

Regulatory guidance continues to evolve, but the core principles of risk governance remain unchanged. Whether you lead a $300 million credit union or a multi-billion-dollar institution, understanding how risk culture, appetite, and oversight interact is essential.

This archive episode remains highly relevant as examiners increasingly scrutinize concentration risk and enterprise risk management practices.

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

In this episode of With Flying Colors, Mark Treichel is joined by former NCUA leaders Geoff Bacino, Alonzo Swann, and John McKechnie for a timely and candid discussion about Chairman Kyle Hauptman’s appointment to the Public Company Accounting Oversight Board (PCAOB) — and what it signals for the future of the NCUA.

While the announcement appears straightforward, the panel explains why it creates a ripple effect across the agency, including questions about leadership continuity, pending lawsuits, board vacancies, staff reductions, and the broader stability of the regulator at a critical time for credit unions.

This conversation goes beyond speculation and into how the agency actually functions when leadership is in flux — from delegation of authority to examiner operations to internal morale.

You’ll hear insider perspective on:

• Why Hauptman’s “intent to remain” language matters
• How the Slaughter/Harper lawsuits could determine the shape of the future board
• What a one-member board means in practice
• Why notation votes and lack of public discussion are becoming a concern
• The real impact of a 27% staff reduction at NCUA
• How agency expertise gaps are affecting morale and operations
• The upcoming interest rate ceiling decision and why it may be politically sensitive
• Why the agency may be “running itself” more than people realize
• What happens if the Supreme Court changes how independent boards operate
• Predictions on who may replace Hauptman and what that means for credit unions

The panel also discusses how political dynamics, Senate control, and White House strategy could shape the next NCUA board in ways credit unions haven’t seen before.

Despite the uncertainty, one theme is clear: the blocking and tackling of supervision continues, but major structural decisions are happening quietly beneath the surface.

This episode is essential listening for anyone trying to understand where NCUA is headed in 2026.

👥 Guests

• Geoff Bacino – Former NCUA Board Member
• Alonzo Swann – Former NCUA Regional Director
• John McKechnie – Washington, DC credit union advocate and consultant

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

Chairman Hauptman’s Statement on Appointment to PCAOB

ALEXANDRIA, VA (January 30, 2026) – National Credit Union Administration Chairman Kyle S. Hauptman issued the following statement after being named as a member of the Public Company Accounting Oversight Board (PCAOB).

“I am grateful to President Donald J. Trump and Chairman Paul S. Atkins for their faith in me and for the appointment to the PCAOB,” said Chairman Hauptman. “I intend to remain in my role as NCUA Chairman until my successor is appointed by President Trump and confirmed by the U.S. Senate.”