The “recommended” designation means there is no law or regulation that requires the policy or update, but it is still recommended because examiners will want to see it. This is often based on letters to credit unions or Interagency Guidance that don’t have the force of regulation. Credit unions are free to disregard this advice and omit the recommended verbiage, but it will likely appear on an exam report that a credit union doesn’t have this information in a given policy.