Credit Union Annual Report 2021 V2 - Flipbook - Page 10
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Credit Union ANNUAL REPORT 2021
during the past year we took a major step in building a robust
no costs to members because it is paid from the income
enterprise risk management system. Under the guidance
earned.” The total membership at the time was 85, total
of Pricewaterhouse Coopers (PwC), a detailed risk analysis
deposits were $8.2K, and loans were $3.9K.
and development of a risk register was completed by
Management. This register will be reviewed and updated
by Management quarterly, with regular reporting by the
Chief Executive Officer to the Board of Directors for ongoing
monitoring.
Unlike other Caribbean Credit Unions, our Credit Union did
not charge a fee/premium to members for this benefit and
therefore it remains an expense to this day. The total amount
paid in claims to member beneficiaries has substantially
increased over the years as our membership has grown
In the coming months we will continue to strengthen
to over 16K, with deposits in excess of $400M and loans
our risk management framework by developing a
over $300M. In 2017 claims paid were $201K, $251K in 2018,
Risk Management Policy which will define the risk
$289K in 2019, $271K in 2020 and $419K by 2021.
appetite statement for the Credit Union; set out roles
and responsibilities for Risk Management; and provide a
mechanism for the ongoing monitoring of each main risk
category impacting the Credit Union.
Due to the increasing expense from beneficiary benefits,
which are paid before the final surplus is available for
distribution to all eligible members, the Board decided
to review the way this benefit is applied. As such, an ad
We believe that by embedding a structured system of risk
hoc sub-committee was appointed by the Board and
management the Credit Union will continue to have strong,
is comprised of three members, and is chaired by one
resilient operations well into the future.
director.
Compliance
The members of the Committee recommended that
The compliance function is another critical area of Credit
is determined, but instead, a “Benevolent Fund” should
Union operations which is closely monitored by the Board
be created and funded from a portion of the final audited
of Directors in an effort to ensure that the Credit Union fulfills
surplus, subject to member approval at the AGM. This
its obligations under the regulatory framework established
recommendation was supported by the Board, who also
by CIMA and the Cooperative Societies Act.
streamlined the way the benefit is calculated to reduce the
Regulatory and operational compliance is monitored by
administrative burden. The Board put forward a proposal for
the Supervisory Committee through the control functions
approval by the members; see Resolutions on page 31.
the benefit should not be paid before the final surplus
performed by the Chief Risk and Compliance Officer and
the Internal Audit Manager. The Board receives and reviews
monthly reports from these control functions through the
CEO and the Supervisory Committee.
During the past year we have expanded capacity in the
Compliance Department by recruiting a Deputy Chief Risk
CORPORATE SOCIAL RESPONSIBILITY
The Credit Union’s signature Educational Grants Programme
is one of the primary ways we fulfill our social responsibility
to develop our community.
and Compliance Officer. This has allowed for additional staff
In 2021, our Credit Union provided 167 members and
training, business process improvements and enhanced
children of members with $200,000 to pursue their
transaction/account monitoring, thereby strengthening our
educational goals through the Rupert McCoy Education
ability to manage the potential money laundering, terrorist
Grants Programme.
financing, proliferation financing, and data protection risks
During the financial year, the Credit Union assisted
we face.
charitable entities, events benefitting youth services and
MEMBER BENEFITS
On 18 January 1977, the Credit Union’s Board of Directors
older persons, and sponsored educational achievement
awards at high schools in our community. See further
details on community involvement on pages 26 and 27.
decided to provide an incentive for members to save on
a consistent basis and to borrow; this benefit came in the
In the coming months we will continue to strengthen
form of “insurance” on their deposits and loan balances
our risk management framework by developing a
which would go to their beneficiaries after their death. The
Risk Management Policy which will define the risk
directors noted that this “insurance coverage is given at
appetite statement for the Credit Union.