Risk Assessment and Examinations
To ensure that insured institutions effectively manage their principal business risks, DICO has developed a comprehensive risk assessment program for enterprise risk management. This program is utilized to determine whether all principal risks have been identified, assessed and adequately managed.
DICO's Risk Assessment Program consists of three main components:
- Collection and analysis of financial and non financial data
- Conducting examinations to confirm the level of risk determined from information reported and to confirm compliance to the Act
, Regulations etc. - Developing risk profiles for each institution based on its principal risks and the quality of risk management practices Risk Assessment Framework
Examinations
The following documents are helpful for preparing an examination. Credit Unions and Caisses Populaires plan their business according to the regulations and DICO examiners perfom exams according to the same terms.
- Examination Review Process (April 2010)
- Examination Manual - Third Party (2008 Updated January 2011)
- Examination Manual, Appendix B, FINTRAC Compliance Review Form (2008)
- Examination Program - Insured Institution Faxback Form (2014)
To help insured institutions with the business planning process and/or preparing for examinations the following documents are made available for consultation :
- Audit Committee Checklist (2009)
- By-law #5 - Commercial Lending Practices May 2005 (updated May 2008)
- By-law #5 Standards of Sound Business and Financial Practices (2011)
- By-law #6 - Standards of Sound Business and Financial Practices: Reserves and Monthly Provision for Doubtful Loans (2010)
- By-law #6 - Collective Loan Loss Allowance Models 1-5 (2010)
- By-law #6 - Loan Provisioning Discounting Test for Class 1 Credit Unions and Caisses Populaires (2010)
- By-law #6 - Loan Provisioning Discounting Test for Class 2 Credit Unions and Caisses Populaires (2010)
- Common Examination Findings for Commercial Credit Webinar (2011)
- Credit Unions and Caisses Populaires Act, 1994
- Credit Unions and Caisses Populaires Act, 1994, O. Reg. 237/09 (Credit Unions)
- Credit Unions and Caisses Populaires Act, 1994, O. Reg. 238/09 (Cost of Borrowing and Disclosure to Borrowers)
- Capital Adequacy Guideline (2013)
- Director's Handbook (2016)
- Guidance Note Investments (2009)
- Guidance Note Lending (2009)
- Guidance Note Liquidity (2017)
- Guidance Note Structural (Interest Rate) Risk(2009)
- Sound Business and Financial Practices Reference Manual