Cayuse Blog

Tabletop Tested: Disaster Recovery for Credit Unions

Written by Cayuse | Sep 23, 2025 4:30:00 PM

In today’s volatile digital environment, credit unions face mounting pressure to both plan for disruptions and prove readiness. Cyberattacks, natural disasters, and system outages are no longer hypothetical situations. They are inevitable and require measures and exercises stemmed in protection and recovery. That is why the most resilient credit unions don’t just have a plan on paper - they test it.

An annual Disaster Recovery (DR) tabletop exercise is one of the most effective ways to meet regulatory expectations while building operational resilience and member trust. It goes far beyond just checking a box on a cyber ‘to do’ list. DR is about protecting the future of your institution and the customers it serves. 

What is a Tabletop Exercise? 

A tabletop exercise is a structured, discussion-based simulation of a disaster scenario - such as a cyberattack, natural disaster, or system outage. Key personnel gather to walk through their response step-by-step, identifying gaps, clarifying roles, and improving coordination.

 

Unlike live drills, tabletop exercises are conducted in a low-pressure setting, allowing teams to evaluate their plans, decision-making processes, and communication strategies without disrupting operations. The goal is to ensure that when a real crisis occurs, the credit union is ready to respond swiftly, confidently, and in full compliance with regulatory expectations.

 

While the value of tabletop exercises is clear in theory, the data makes it undeniable. Industry research and real-world feedback consistently show that tabletop simulations are one of the most effective ways to strengthen disaster recovery plans, improve team coordination, and reduce regulatory risk.

 

  • 74% of participants in a national tabletop exercise program reported that the simulations improved their understanding of disaster response protocols and highlighted gaps in their plans. In the study, 39 interviews were conducted post-exercise. They revealed that tabletop exercises helped organizations refine communication strategies, clarify roles, and improve cross-functional coordination.
  • According to CreditUnions.com, tabletop exercises are considered one of the most practical tools for continuity readiness in financial institutions. 

NCUA Regulations: What's Required & Why It Matters

The National Credit Union Administration (NCUA) mandates that federally insured credit unions maintain comprehensive, written, and annually tested Disaster Recovery and Business Resumption Contingency Plans. These requirements include:

  • A Business Impact Analysis (BIA) - A BIA helps credit unions identify which operations are critical and how disruptions could affect service delivery, financial stability, and member trust. This focuses on the foundation for prioritizing recovery efforts and allocating resources effectively.
  • A Formal Risk Assessment - Risk assessments allow credit unions to evaluate potential threats - ranging from cyberattacks to natural disasters - and determine the likelihood and impact of each. This provides for DR plans that are tailored to real-world vulnerabilities, not generic scenarios.
  • Documented Annual Testing of Recovery Procedures - Testing isn’t just a formality – it is proof of readiness. Annual tabletop exercises validate that your recovery procedures work as intended and reveal gaps before they become liabilities. Regulators want evidence that your plan is actionable, not aspirational.
  • Oversight by Senior Management and the Board of Directors - Executive oversight provides for DR planning that is not siloed within IT or compliance but rather is a strategic priority. When leadership is involved, plans are more likely to be resourced, updated, and aligned with the credit union’s broader risk management goals.

Failure to meet these standards can result in audit findings, reputational damage, and even regulatory penalties. But beyond compliance, these measures are a blueprint for resilience, and a signal to your members that their trust is well placed. 

The Compliance Strategy

Going beyond a technical requirement, disaster recovery is a leadership imperative. Credit unions that treat compliance as a strategic advantage, rather than a regulatory burden, are better positioned to protect their members, their reputation, and their long-term viability.

An annual tabletop exercise is a proving ground. It allows your team to test its readiness, your systems to reveal their resilience, and your leadership to demonstrate their commitment to safeguarding what matters most. A well-executed tabletop strategy can elevate your institution in several ways, including:

  1. Audit Compliance

The NCUA expects credit unions to test their disaster recovery plans regularly. Annual tabletop exercises demonstrate that your institution is not only compliant on paper but also prepared in practice. These exercises help satisfy audit requirements and reduce the risk of findings during exams. They show regulators - and your members - that you take risks seriously.

 

  1. Confidence and Credibility

Simulating scenarios like ransomware attacks, power outages, or regional disasters allows your team to rehearse their response in a safe, structured environment. These exercises reveal gaps, clarify roles, and strengthen your institution’s ability to respond swiftly and effectively.

 

  1. Cross-Functional Collaboration

Disaster recovery isn’t just an IT issue. It requires coordination across operations, compliance, communications, and leadership. Tabletop exercises bring these teams together, fostering shared understanding and faster decision-making when it matters most.

 

  1. Member Trust

Your members trust you with their most sensitive data and financial assets. Practicing your response to emergencies shows that you honor that trust. In times of uncertainty, preparedness becomes a competitive advantage - and a brand differentiator.

 

  1. Continuous Improvement

The threat profile is constantly developing. New technologies, staffing changes, and emerging risks require regular updates to your DR plan. Annual tabletop exercises provide for a strategy that stays relevant, actionable, and aligned with today’s realities.

 

When tabletop testing goes beyond your compliance checklist and becomes part of your culture, you build a stronger, more resilient credit union. It is one that is ready to protect its members, meet regulatory demands, and lead with confidence in any crisis.

 

Resilience Isn't Optional

If your credit union isn’t conducting annual tabletop exercises, you’re leaving compliance, coordination, and member trust to chance. Regulators expect it. Your members deserve it. Your institution depends on it.

 

At Cayuse, we specialize in guiding credit unions through disaster recovery tabletop exercises that are both compliant and transformative. Our expert-led sessions are tailored to your unique risks, operations, and regulatory obligations - so you can lead with confidence when it counts the most.

 

Check out this case study that shows how our tabletop exercises led to measurable improvements in disaster recovery planning - especially for our client with previously immature and fragmented DR strategies.

 

Are you ready to simplify your tabletop planning? Schedule a time to speak with us and let’s build your roadmap to resilience.