Page 139 - RB GRENADA ANNUAL REPORT 2025_ONLINE

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Notes to the Financial Statements

For the year ended September 30, 2025. Expressed in Thousands of Eastern Caribbean dollars ($’000), except where otherwise stated.

18 Risk management (continued)
18.4 Market risk (continued)
18.4.2 Currency risk (continued)

2024 ECD USD TTD Other Total

Financial liabilities
Due to banks 4,636 944 – – 5,580
Due to related banks 7,484 – 7 3 7,494
Due to related companies 168,390 – – – 168,390
Customers’ current, savings
and deposit accounts 1,586,517 170,845 – 856 1,758,218
Accrued interest payable 352 1 – – 353

Total financial liabilities 1,767,379 171,790 7 859 1,940,035

Net currency risk exposure 699,067 (7) 2,746

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

Effect on profit before tax 6,991 – 27

18.5 Operational risk
The growing sophistication of the banking industry has made the Bank’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 Bank 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 Bank’s operational risk department oversees this
and where appropriate, risk is transferred by the placement of adequate insurance coverage.

The Bank 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.