Now, examiners implement an enterprise risk management approach in which they review seven risk categories – credit, liquidity, operational, reputation, interest rate, strategic and compliance – and weigh how they fit into the CAMEL matrix.

Examiners don't just expect a credit union to manage current risks, but also be prepared to respond to risks of the future. Segerson said he's seen credit unions “time and time again” experience risks that have emerged and grown so quickly, they've been shuttered within 18 months.

Segerson provided the room with a Top 10 list of examiner red flags when evaluating effective risk management. They include a lack of commitment to risk management, disengaged leadership, concentrated power over decision making, failure to adhere to policies and procedures, disproportionately high yields compared to risk, and misaligned incentives.

Paying lending executives on volume without concern to quality or sustainability will take credit unions down quickly, the exam deputy said. In fact, although he declined to name names, Segerson said volume-based incentives were the reason behind a credit union failure earlier this year.

The NCUA is working with nine other regulatory agencies to write new rules that limit incentive-based compensation plans, he added. Those rules are mandated by the Dodd-Frank Act, Segerson said.