Murphy’s law—anything that can go wrong will—seems to have been unleashed in the financial services industry over the last few years. Add to the deep recession and mortgage crisis the proliferation of Internet and credit card fraud, to name just a few challenges, and there’s little wonder that risk management has come to the forefront of board and executive responsibilities.

In an atmosphere where disasters—from floods and wildfires to record foreclosures—have apparently stopped waiting and are just happening, directors may be spending extra time scrutinizing the credit union’s insurance coverage to ensure the organiz…