Page 166 - RFHL ANNUAL REPORT 2024_ONLINE

164 Notes to the Consolidated Financial Statements
For the Year Ended September 30, 2024.
Expressed in millions of Trinidad and Tobago dollars, except where otherwise stated.

22. Risk management (continued)
22.4 Market risk (continued)
22.4.2 Currency risk (continued)

2023 TTD USD BDS GHS SRD KYD Other Total

Financial liabilities
Due to banks 1 159 24 2 – – 112 298
Customers’ current,
savings and deposit
accounts 32,425 22,337 7,908 1,888 322 5,365 19,668 89,913
Other fund raising
instruments 2,654 644 – 352 – – – 3,650
Debt securities
in issue 5 1,468 – 45 – – – 1,518
Lease liabilities 241 9 35 7 1 94 45 432
Accrued interest
payable 33 86 – – 1 16 10 146
Other liabilities 415 288 107 - 9 64 171 1,054

Total financial
liabilities 35,774 24,991 8,074 2,294 333 5,539 20,006 97,011

Net currency risk
exposure 3,226 895 320 160 (89) 272

Reasonably possible
change in currency rate (%) 1 1 3 1 1 1

Effect on profit before
taxation 32 9 10 2 (1) 3

22.5 Operational risk
The growing sophistication of the financial 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.