Page 81 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
25. Financial instruments, continued
(a) Credit risk, continued
The exposure to credit risk for contributions at the reporting date, by type of geographical location, was as follows:
Providenciales Grand Turk North Caicos South Caicos Pine Cay Middle Caicos Salt Cay
Providenciales Grand Turk North Caicos South Caicos Pine Cay Middle Caicos Salt Cay
2013 Gross Impairment
US$ 3,149,097 907,228
Carrying Amount
2,241,869 190,062 95,980 25,944 9,029 648 1,230
2,564,762
Carrying Amount
2,016,824 241,410 64,083 31,549 8,235 1,602 1,313
2,365,016
252,422 139,797 63,802 9,276 2,014 3,230
62,360 43,817 37,858
247 1,366 2,000
US$ 3,619,638 1,054,876
2012 Gross Impairment
US$ 2,731,177 714,353
322,673 92,091 58,159
8,292 5,649 3,940
81,263 28,008 26,610
57 4,047 2,627
US$ 3,221,981 856,965
NIB’s activities may give rise to risk at the time of settlement of
Settlement risk is the risk of loss due to the failure of an entity to honour its obligations to deliver cash, securities or other assets as contractually agreed. For the vast majority of transactions NIB mitigates this risk by conducting settlements through a compliance officer to ensure that a contribution is settled only when both parties have fulfilled their contractual settlement obligations.
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transactions.