Non-Consolidated Annual Report 2015

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2015 52 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2015 (Expressed in Barbados dollars) 41 23. Commitments and Contingencies...(continued) (iv) Lease commitments The Credit Union leases branch facilities under operating leases. Payments made under these leases are recognised in the statement of income on a straight-line basis over the term of the lease. The future minimum rental payments related to these commitments are as follows: 2015 2014 Less than one year $ 627,265 296,196 Between one and five years 2,903,100 1,184,784 $ 3,530,365 1,480,980 During the year, $753,149 (2014 - $285,915) was recorded as an expense in the statement of income in respect of operating leases. 24. Financial Risk Management Introduction Risk is inherent in the Credit Unionʼs activities but is managed through a process of on-going identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Credit Unionʼs continuing profitability and each individual is accountable for the risk exposures relating to his or her responsibilities. The Credit Union is exposed to credit risk, liquidity risk, market risk and operational risk. The Credit Unionʼs aim therefore is to achieve an appropriate balance between risk and return and minimise potential adverse effects on its financial performance. The independent risk control process does not include business risks such as changes in the environment, technology and industry. The Credit Union's policy is to monitor those business risks through its strategic planning process. Risk management structure The Board of Directors is responsible for the overall risk management approach and for approving the risk management strategies and principles. The Supervisory Committee has the responsibility to monitor the overall risk process within the Credit Union. The Credit Unionʼs policy is that risk management processes are audited annually by the Internal Audit function, which examines both the adequacy of the processes and the Credit Unionʼs compliance with the processes. Internal Audit discusses the results of all assessments with management, and reports its findings and recommendations to the Supervisory Committee.