Page 148 - Capricorn IAR 2020

GLOSSARY OF TERMS ANNUAL FINANCIAL GLOSSARY OF TERMS STATEMENTS
NOTES TO THE CONSOLIDATED AND SEPARATE ANNUAL FINANCIAL STATEMENTS (continued)
for the year ended 30 June 2020
3. FINANCIAL RISK MANAGEMENT (continued)
Credit risk forum (“CRF”)
The purpose of the CRF is to have an oversight of credit risk management in accordance with the board approved credit risk framework, in order to achieve and maintain an acceptable credit risk profile and an adequate risk and control framework.
On portfolio credit risk level, the scope of the CRF includes:
• Portfolio analysis and performance
• Key risk indicators and trends
• Risk adjusted pricing performance on portfolio level
• Discuss and review credit portfolio risk and recommend to the business units risk enhancement
• Product and pricing strategies
• Discuss and review of annual risk appetites and stress testing of the credit portfolio before submission to the risk committee
• Discuss and review collateral and recommend necessary improvements
The CRF facilitates compliance with:
• Basel and other best practices for credit risk management
• Applicable legislative acts
• Bank of Namibia determinations
• Group credit policies
IFRS 9 committee
The IFRS 9 committee is the main forum where specific matters that can cause deterioration in credit risk will be discussed. At this meeting decisions will also be made on the risk associated with the prevailing and forecasted macroeconomic conditions and the impact on specific sectors in the applicable economies.
The IFRS 9 committee is established to make the following decisions at each reporting period in terms of the impairment allowance model utilised by the Group:
1. Assumptions
2. Inputs, including macroeconomic variables
3. Results
4. Movements in sectors/regions
5. Sign-off total impairments for the reporting period
Significant risks to which the Group is exposed are discussed below.
3.1 Analysis of assets and liabilities
The assets/liabilities held for sale have not been included in our financial risk management disclosure. The table below reconciles the financial risk management disclosure to the statement of financial positions:
Total assets as per statement of financial position Less: assets held for sale
Total assets excluding assets held for sale
Total liabilities as per statement of financial position Less: liabilities held for sale
Total liabilities excluding liabilities held for sale
Financial assets and financial liabilities are measured either at fair value or at amortised cost. The principal accounting policies on pages 129 to 144 describe how the classes of financial instruments are measured and how income and expenses, including fair value gains and losses, are recognised.
2020 N$’000
56,338,126
1,517,394
54,820,732
49,608,062
1,496,888
48,111,174
146