CU Chief Internal Auditor 'Prioritizes Transparency' in Sharing Vision With Team

Name: Rob Johnson

Credit union: Michigan State University Federal Credit Union ($7.8 billion, East Lansing, Mich.)

Title: Chief Internal Auditor

Age: 38

Number of years at current credit union: 12

Educational background: B.A. in Accounting and Management from Northwood University in Midland, Mich.

CU Times: What are your key responsibilities in your current role?

Johnson: My key job responsibilities include the following:

• Directing audit employees in the planning, organizing, directing and monitoring of internal auditing operations, including assisting in hiring, training and evaluating employees, and taking effective actions to address performance matters;
• Analyzing areas of risk for the credit union and determining the significance of each, and using this analysis to prepare the annual audit plan by establishing the frequency and depth of audit coverage for individual audit programs to be conducted;
• Staying informed of all laws, regulations and other information that affect the credit union’s operations, and determining whether internal controls are adequate to ensure compliance with credit union goals, objectives, policies, procedures and applicable laws/regulations while maintaining economical and efficient use of resources;
• Directing the overall performance of audit procedures, including identifying and defining issues, developing criteria, reviewing and analyzing evidence, and documenting client processes and procedures;
• Responsible for development and implementation of a compliance audit program that effectively reviews the various areas impacted by the applicable laws and regulations to ensure ongoing compliance with relevant laws and regulations; and
• Directing the audit employees in conducting interviews, reviewing documents, developing and administering surveys, composing summary memos and preparing working papers.

CU Times: What drew you to the credit union industry?

Johnson: I was initially drawn to the credit union industry by its mission of ‘people helping people.’ Growing up in a small, rural community instilled in me a deep appreciation for community involvement, mutual aid and collective well-being. My early experiences with volunteerism, particularly through 4-H and the Special Olympics, integrated a commitment to helping others that has stayed with me throughout my credit union career. These experiences shaped my personal core values, leading me to the credit union industry.

Prior to joining MSUFCU, I worked in public accounting where I provided audit and quality assurance services to various financial institutions. This role allowed me to see firsthand the impact of variety of work within the financial sector. I found the work both challenging and rewarding, and I was particularly inspired by the credit union industry’s mission to offer affordable financial services, foster a cooperative spirit and engage with the community.

CU Times: What unique skills, experience and attributes do you bring to your role?

Johnson: With nearly 16 years of audit experience, including 12 years in internal audit at MSUFCU, I have developed a solid understanding of internal controls, risk management practices and regulatory compliance.

I believe internal auditors should add value to their organization. While it is crucial for internal auditors to remain independent and objective, this does not mean disregarding the organization’s strategic direction and risk appetite in favor of imposing your own. Our role should not be to place roadblocks but to help establish effective guardrails that mitigate inherent risks. Based on this philosophy, I see internal audit as a value-added partner, one that is invited to the table early and often to collaborate on initiatives that result in better processes and service for members and employees.

CU Times: Which person (or people) do you credit the most for helping and supporting you along your career journey?

Johnson: Throughout my career at MSUFCU the guidance and mentorship provided by President/CEO April Clobes and Chief Risk Officer Jim Hunsanger has been invaluable.

Ms. Clobes has truly embraced the value of internal audit and risk management within our organization and across the financial industry. It is not atypical for internal audit and organizational leadership to have a strained and sometimes contentious relationship. Under April’s leadership, MSUFCU has taken advantage of Internal Audit’s expertise and used our team’s knowledge and experience to progress strategic initiatives through providing meaningful insights and support. April’s belief in the value of a strong partnership between internal audit and credit union leadership is evident in my appointment to the Executive Team, which has provided me a seat at the table and influence in the credit union’s strategic vision.

Mr. Hunsanger’s mentorship has been instrumental in my journey at MSUFCU and has provided me a nuanced understanding of balancing risk and opportunity and how it applies to the financial sector. Our partnership has reinforced the importance of integrating risk management into all aspects of MSUFCU’s operations, ensuring that we not only protect but also enhance the value we deliver to members. Since hiring me at MSUFCU in 2012, Jim has provided me with many opportunities to expand my skill set and has been a champion for my growth.

CU Times: What are some of the biggest differences between working in your current executive level role and your previous, non-executive roles?

Johnson: Since my promotion to the Executive Team, I have played a more active role in helping to further the credit union’s strategic vision, including its subsidiaries, by effectively communicating and supporting major changes and initiatives. My role has provided me a larger platform within MSUFCU and across the credit union industry to advance internal audit programs. I have had the ability to act as a thought leader at industry conferences and positively contribute to others’ knowledge and understanding of the valuable role internal audit plays in ensuring an organization’s safety and soundness.

CU Times: What’s a challenge you faced when you first joined your executive team, and how did you overcome it?

Johnson: Since joining MSUFCU’s Executive Team, I have learned to be more proactive in sharing my thoughts and experience. I am naturally an analytical and calculated thinker but have adjusted my communication style and thought process to embrace ideation and the entrepreneurial spirit. This shift has allowed me to better support the ongoing growth and success of the organization. I have grown comfortable with not knowing all the answers and being more agile in the way I approach and react to challenges.

The increased scope of responsibilities and new demands on my time have been a catalyst for improving my delegation skills. By becoming less hands-on with the day-to-day operations of the Internal Audit division, I have created space to focus on its strategic direction and collaborate with my fellow executives on the credit union’s broader strategic initiatives. This shift has allowed me to contribute more effectively to our organization’s long-term success.

Like anything, working on these challenges is a work in progress. Proactively sharing ideas, contributing to major decisions and being uncomfortable with ambiguity have all led me to confidence in my role. Shifting my mindset from wearing my ‘audit hat’ and reframing my thoughts in the context of ‘yes, and’ has helped demonstrate that I can support major strategic initiatives and contribute to refining the idea, rather than primarily focusing on the risk and audit perspective. Delegation is made easier through my skilled audit manager who leads our dedicated Internal Audit team.

CU Times: How would you describe your current leadership style?

Johnson: I have found my leadership style is fluid and can vary depending on circumstances and the constant evolution within MSUFCU and the banking industry. As a leader I strive to be democratic, prioritize employee development through coaching and have a strategic mindset.

As a democratic leader, I work to foster collaboration by actively seeking input from my team and colleagues across the organization. I consistently encourage my team to share their perspectives on our department’s vision and any changes to our processes or procedures. While I take ownership, make decisions and set the direction as a leader, I believe a collaborative approach ensures that each team member has a voice. This inclusivity enhances our collective understanding of the department’s objectives and vision, ultimately driving our success.

Through my career, I have taken a hands-on approach with my team, viewing myself more as a coach than a manager. I find great fulfillment in mentoring others and providing guidance, helping others to grow and develop in their own careers.

As a strategic leader, I prioritize transparency in sharing my vision with my team and demonstrating how our internal audit objectives align with the credit union’s overall strategic vision. I continuously seek ways to enhance the audit experience for our key stakeholders and to create efficiencies, such as implementing the credit union’s first audit management tool, automating workflows and other initiatives that will further our area’s impact.

CU Times: Do you approach your job any differently now compared to how you did pre-pandemic? If yes, how so?

Johnson: Like many, my communication style has changed dramatically as a result of the pandemic and my own personal growth. In a world of more ‘remoteness,’ I prefer a phone call or face-to-face communication. I have found these interactions to be more efficient and effective, better enabling a mutual understanding between parties, whereas context is lost in translation through the hundreds of emails and chats. I have found the shift in my communication approach allows me to build stronger relationships with others throughout the organization, a skill that is imperative for any leader.

CU Times: What’s next for you on your executive career journey? Do you have any specific career goals you’re working toward?

Johnson: In the short term, I am focused on continuing to learn and grow within my new role. I’m surrounded by a fantastic group of executives with years of knowledge and experience. Engaging with my colleagues has helped me grow personally and professionally and taught me to think differently.

Within the Internal Audit division, we continue to push to create a more efficient and effective audit process to ensure that we consistently add incremental value. Our efforts will include the implementation of innovative tools such as robotic process automation (RPA) and artificial intelligence.

When considering my long-term goals, I hope to leverage my knowledge and experience and expand my responsibilities to other operational areas within the credit union. As a son of a small business owner, I’ve always had a heart for being an entrepreneur. Coupling that with my knowledge and experience, I would like to help the credit union succeed in other endeavors when I am ready for the next challenge.

CU Times: What big-picture impact do you hope to make within your credit union, as well as for your members and community?

Johnson: I aim to continue positively impacting our credit union by delivering a value-added audit experience that assures all stakeholders of our safety and soundness. This assurance enables us to take measured risks, allowing our credit union to thrive and further invest in our members and community. Additionally, I aspire for my thought leadership in the internal audit space to serve as a valuable resource for other credit unions, helping them advance their internal audit programs and risk management practices.

CU Times: What career advice would you give your younger self?

Johnson: If I could give career advice to my younger self, I would emphasize the importance of patience and enjoying the journey, recognizing that everyone’s path is different. I would advise appreciating all experiences – whether good, bad or challenging – as they shape who you become. I’d remind myself that while tough days are inevitable, remember to zoom out and what truly matters is having a great year overall. Finally, I would stress that there will always be things you don’t know, and it’s more important to be willing to figure them out than to have all the answers upfront.

Would you or someone you know like to share your journey to credit union leadership? Please reach out to Natasha Chilingerian at nchilingerian@cutimes.com. To qualify, the individual must be a part of a credit union’s leadership team or C-suite, and have a compelling story to share about their rise to their current leadership role.