sJU5 398im5WjrIJirbeG-Credit Union AGM Booklet 2024 - Flipbook - Page 44
44 Credit Union AGM Booklet 2024
External Audit
Concerning external audit activities, on 18 July 2024, the
Supervisory Committee met with the representatives of
Ernst and Young and engaged them to perform the audit
and render an opinion on the Credit Union’s 昀椀nancial
position from 1 August 2023 through 31 July 2024. There
have been no challenges to note in this area.
successfully identi昀椀ed and selected an automated
transaction monitoring software solution to assist with
monitoring and screening member transactions and to
conduct automated risk assessments of our members.
This system was identi昀椀ed in the 昀椀rst quarter of the 昀椀scal
year and is now in the implementation stage.
Despite some challenges, as previously mentioned, the
Credit Union achieved success in business and
operational areas. Several of the successes achieved by
the Credit Union this year were in risk management.
Additionally, the Credit Union has thoroughly updated its
AML-related policies to ensure compliance with regulatory
requirements. The Credit Union has also clari昀椀ed and
streamlined roles within its 昀椀rst line (frontline staff) and
second line (oversight team) of defence, with ongoing
efforts to continue streamlining these roles. This will further
enhance the AML Compliance Programme and improve
ef昀椀ciency across operations.
Firstly, the Credit Union hired a Senior Risk & Compliance
Manager (“SRCM”) with years of experience in risk
management. The new SRCM has successfully
implemented new risk initiatives and provided training.
These measures underscore the Credit Union’s
commitment to regulatory compliance and operational
ef昀椀ciency, strengthening its overall risk management
infrastructure.
Another noteworthy accomplishment was
restructuring operational teams to ensure clear
distinctions between the 昀椀rst and second lines of defence,
ensuring a proper three-line defence system was
established and effective within the Credit Union.
The Way Forward
Risk Management Framework
Further, an enhanced documented Risk Management
Framework has been implemented, which de昀椀nes the
Credit Union’s risk appetite statement and speci昀椀es the
level and types of risk the organisation is prepared to
accept to achieve its business goals. The framework also
ensures that effective risk management activities are
conducted across all business areas.
The Credit Union has also commenced modernising its
risk management tools, including updating the risk register
and risk assessment process.
Finally, as part of its ongoing dedication to fortifying risk
management practices, the Credit Union launched “Risk
Month” in February 2024. Representatives of the Risk and
Compliance team trained employees and the Board and
Committee members at the March 2024 statutory meeting.
The sessions aimed to ensure that we are well-positioned
to adapt to new challenges, ultimately strengthening our
resilience and supporting the Credit Union’s strategic
goals.
AML Compliance Programme
Notwithstanding its accomplishments in risk management,
the Credit Union has also made signi昀椀cant strides in
enhancing its AML (Anti-Money Laundering) Compliance
Programme.
A key focus of the Credit Union has been adopting
technological solutions and reinforcing its policies and
procedures. Considering this, the Credit Union
As the Credit Union continues to evolve into a prominent
昀椀nancial institution, we remain committed to strengthening
our Risk Management Framework (“RMF”) and enhancing
internal controls to safeguard our assets and ensure full
compliance with increasingly stringent regulatory
requirements.
Looking ahead to the 2024/2025 昀椀nancial year, our audit
plan will maintain a strong focus on monitoring and
reporting progress on implementing action plans
designed to address audit 昀椀ndings. This commitment to
continuously evaluating the internal control environment
will ensure that issues are promptly identi昀椀ed and
resolved, reinforcing the Credit Union’s resilience and
operational integrity.
Thank You
Performing our duties as a Supervisory Committee, in
practice, necessitated collaborations with the Board of
Directors (“Board”), members of other Committees and
senior management on an ongoing basis. We therefore
wish to thank the Chairman of the Board, the Chief
Executive Of昀椀cer, the Deputy Chief Executive Of昀椀cer, the
Chief Risk and Compliance Of昀椀cer, the Internal Audit
Manager, members of the Supervisory Committee and all
other management, staff and elected members who have
provided their assistance and cooperation throughout the
year.
Finally, we wish to express our thanks to you, the
members, for the opportunity you have given us to serve
on the Supervisory Committee during the 昀椀scal year in
support of our mandate.
