Page 188 - RFHL ANNUAL REPORT 2025 ONLINE_NEW

186 • Republic Financial Holdings Limited 2025 Annual Report • FINANCIALS

Notes to the Consolidated Financial Statements

For the year ended September 30, 2025. Expressed in millions of Trinidad and Tobago dollars, except where otherwise stated.

22 Risk management (continued)

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.

Managing cybersecurity related threats across the RFHL Group remains a major priority. As part of the Group’s business
strategy in reducing cyber risk exposure, cybersecurity is embedded in the design of technology and services prior to
deployment. The Group’s Enterprise Risk Management Committee is responsible for overseeing cybersecurity risks and
maintaining cybersecurity risk appetite. Mechanisms are in place across the Group to predict, prevent, detect and respond
against cyber threats and where appropriate, risk is transferred by the placement of adequate insurance coverage.

23 Related parties
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence
over the other party in making financial or operating decisions. A number of banking transactions are entered into with
related parties in the normal course of business. These transactions are both secured and unsecured and were carried out on
commercial terms and conditions equivalent to those that prevail in arm’s length transactions, at market rates. The advances,
investments and other assets are gross of ECLs. There have been no guarantees provided or received for any related party
facilities.

2025 2024

Advances, investments and other assets
Associates 2 11
Directors and key management personnel 488 460
Other related parties 163 263

653 734

Deposits and other liabilities
Associates 12 –
Directors and key management personnel 296 175
Other related parties 402 381

710 556