2023 Annual Report - Flipbook - Page 25
25 Credit Union Annual Report 2023
Governance
Risk Management
Risk management is integral to all aspects of the Credit Union's
activities, and we remain steadfast in our commitment to
implementing and enhancing the Enterprise Risk Management
Framework. While we acknowledge that there is still room for
improvement, we are steadily advancing in our journey towards
improving our Enterprise Risk Management efforts. With a
relentless focus on identifying, assessing, and mitigating risk, we
are dedicated to fostering a culture of risk awareness and
resilience.
As a part of our ongoing dedication to fortifying our risk
management practices, February 2023 was dubbed Risk
Month. During Risk Month, comprehensive training sessions
were conducted for our employees, the Board, and Committee
members. These sessions have been instrumental in
equipping our team with the necessary knowledge and skills to
identify, assess and respond to risks effectively. Through these
initiatives, we aim to ensure everyone within the Credit Union is
aligned with our mission to enhance risk management and
drive sustainable success.
“
With a relentless focus on identifying,
assessing, and mitigating risk, we are
dedicated to fostering a culture of risk
awareness and resilience.
During the 昀椀nancial year, the areas we focus most attention on
included:
•
Macroeconomic environment: High in昀氀ation, rising interest
rates, and their impact on our members and business.
•
Credit risk: Due to the high cost of living, we did not
increase rates beyond the pre-pandemic rate; this created a
very competitive interest rate, which in turn increased
demand for our loan products.
•
Liquidity: We managed the demand for loans versus
available cash 昀氀ows for operations, member transactions,
and maintaining our liquidity ratio.
•
Operational-Compliance: We have Identi昀椀ed software to
automate ongoing monitoring of member transactions. We
have also completed a review of the three lines of defence to
improve operational controls. We also strengthen controls by
updating and creating relevant policies and procedures.
•
Operational-Technology: Completed a digital strategy to
modernise manual internal processes to serve our members
more ef昀椀ciently. Cybersecurity awareness training, testing,
and enhanced software solutions to protect our member's
data. We also carried out business continuity testing.
•
Operational-People: Attracting and retaining the needed
employees, focusing on positive employee experience and
the right cultural 昀椀t.