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2014 ANNUAL REPORT
21 Risk management
(continued)
21.4 Market risk
(continued)
21.4.2 Currency risk
(continued)
TTD
USD
BDS
OTHER
Total
2013
Financial assets
Cash and cash equivalents
317,926
41,139
105,080
62,238
526,383
Statutory deposits
with Central Banks
3,501,454
–
318,703
512,443
4,332,600
Due from banks
4,723,162
3,232,411
3,132
1,278,371
9,237,076
Treasury Bills
3,549,106
–
910,074
1,263,896
5,723,076
Investment interest
receivable
32,496
22,202
5,199
5,590
65,487
Advances
15,051,827
3,073,446
4,537,347
2,572,897
25,235,517
Investment securities
3,792,664
3,420,975
659,565
257,843
8,131,047
Total financial assets
30,968,635
9,790,173
6,539,100
5,953,278
53,251,186
Financial liabilities
Due to banks
67
40,874
16,158
16,250
73,349
Customers’current, savings
and deposit accounts
22,166,956
8,962,982
5,300,176
5,668,196
42,098,310
Other fund raising instruments
2,966,237
66,745
371,992
–
3,404,974
Debt securities in issue
1,229,058
–
–
–
1,229,058
Interest payable
20,874
3,782
24,016
3,294
51,966
Total financial liabilities
26,383,192
9,074,383
5,712,342
5,687,740
46,857,657
Net currency risk exposure
715,791
826,758
265,538
Reasonably possible change
in currency rate
1%
1%
1%
Effect on profit before tax
7,158
8,268
2,655
21.5 Operational risk
The growing sophistication of the banking industry has made the Group’s operational risk profile more complex. Operational risk
is inherent within all business activities and is the potential for financial or reputational loss arising from inadequate or failed internal
controls, operational processes or the systems that support them. It includes errors, omissions, disasters and deliberate acts such as fraud.
The Group recognises that such risk can never be entirely eliminated and manages the risk through a combination of systems and
procedures to monitor and document transactions. The Group’s operational risk department oversees this and where appropriate, risk is
transferred by the placement of adequate insurance coverage.
The Group has developed contingency arrangements and established facilities to support operations in the event of disasters.
Independent checks on operational risk issues are also undertaken by the internal audit function.
