GRENADA AUTHORITY FOR THE REGULATION OF FINANCIAL INSTITUTIONS RISK ASSESSMENTS FOR CREDIT UNIONS .

CO-OPERATIVE CREDIT UNION LIMITED. Risks Financial Risk Assessments

[ ] Does credit union have negative capital? [ ] Can the credit union meet its financial obligations? [ ] Credit union has liquidity problems? [ ] Credit union has a sound capital base? [ ] Credit union operates in lots of foreign currencies? [ ] Rate of the currencies change on a regular basis? [ ] Credit union has investments that are held in foreign currencies. [ ] Credit union has liabilities to collect that are in foreign currencies. [ ] Directors take decisions that can be bad for the future of the organization. [ ] The credit union does not have a Strategic Plan [ ] The credit union does not have an Action Plan [ ] The credit union does not have a Budget [ ] The credit union does not have a Marketing Plan. [ ] Directors are not aware of the risks faced by the institution [ ] Credit union does not have a Risk Policy [ ] Credit union does not have a Disaster Recovery Policy [ ] Staff members do not have job descriptions [ ] The credit union has poor lines of reporting [ ] Trial Balances are not done [ ] Variances of the budget are not monitored and investigated [ ] Delinquency is not follow up and monitored properly [ ] Staff members are not properly trained [ ] Most of the work are done manually [ ] Work done by one staff member is not checked for accuracy by another [ ] The credit union des not have an Internal Control Policy [ ] The credit union does not have a Procedures Manual [ ] Many persons have keys to the office and vaults without control mechanisms [ ] Credit union has litigations to be settled in the court [ ] The Regulator has taken legal action against the credit union [ ] The credit union is in violation of the Co-operative Societies Act [ ] The credit union is in violation of Regulation and its own by-laws [ ] The economy of the country posses a risk to the credit union [ ] The financial services sector is unstable [ ] The credit union has investments that are impaired and are unlikely to be received [ ] The economy of the country has an effect on the delinquency of the credit union [ ] The credit union has a high rate of delinquency [ ] The economic situation is causing members not to pay their loans [ ] The credit analysis of the credit union is poor and could result in high delinquency [ ] The credit committee and Loans Officers are not properly trained in credit analysis [ ] The credit union does not meet the liquidity ratio as required by PEARLS. [ ] The credit union has difficulties meeting its financial obligations [ ] The non-earnings assets ratio of the credit union is high. [ ] There is a long period before disbursements after loans are approved

Ratings [ ] High (3-4/4) [ ] Medium (2/4) [ ] Low (0-1/4) [ ] High (3-4/4) [ ] Medium (2/4) [ ] Low (0-1/4)

Currency Risk

Strategic Risk

[ ] High (6-8/8) [ ] Medium (4-5/8) [ ] Low (0-3/8)

Operational Risk

[ ] High (8-11/11) [ ] Medium (5-7/11) [ ] Low (0-4/11)

Legal Risk

[ ] High (3-4/4) [ ] Medium (2/4) [ ] Low (0-1/4) [ ] High (3-4/4) [ ] Medium (2/4) [ ] Low (0-1/4)

Economic Risk

Credit Risk

[ ] High (3-4/4) [ ] Medium (2/4) [ ] Low (0-1/4) [ ] High (3-4/4) [ ] Medium (2/4) [ ] Low (0-1/4)

Liquidity Risk

Technological Risk Investment Risk

[ ] The computers are in areas where they can be affected by floods [ ] The computer information are not backed up on a daily basis [ ] The backed up information are stored at the credit unions office [ ] Computers do not have passwords for each user to log into [ ] All computers do not have anti-virus software installed on them [ ] The credit union does not have an Investment Policy []

[ ] High (4-5/5) [ ] Medium (2-3/5) [ ] Low (0-1/5)