What is the main focus of directive controls?

The main focus of directive controls is to establish outcomes for credit union operations. These controls are designed to set clear objectives and guidelines that shape the activities and decisions within the organization. By defining expected results, directive controls help ensure that all efforts align with the credit union's strategic goals and mission.

Establishing outcomes provides a framework for employees to understand the priorities of the credit union, thereby encouraging consistency in actions and decision-making processes across all levels of the organization. This helps to enhance performance and accountability, creating a proactive environment where everyone is aware of what they are working towards.

While monitoring compliance, detecting past errors, and preventing future risks are essential aspects of a well-rounded risk management strategy, they fall more under the categories of preventive and detective controls rather than directive controls. Directive controls prioritize setting the direction of operations and defining the desired results, paving the way for effective governance and execution in credit unions.