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Risk Management

Purpose

The Risk Management module helps the cooperative identify, assess, monitor, and respond to risks that could affect its operations, finances, or reputation. This includes maintaining a risk register, tracking key risk indicators (KRIs), recording risk incidents, and setting the organisation's risk appetite.

Who Can Access

  • Administrator
  • Risk Officer / Compliance Officer
  • Manager (view and review)
  • Auditor (view only)

How to Open This Page

Compliance & Risk → Risk Management

Screen Overview

Identify & Register New Risk Form

The main page shows a risk register — a table of all identified risks with their likelihood, impact, risk score, and owner.

Risk Register

The Risk Register is the central inventory of all risks the cooperative faces.

Adding a Risk

  1. Go to Risk → Risk Register.
  2. Click Add Risk.
  3. Enter:
  4. Risk Name (e.g., "Member Default on Large Loans")
  5. Category (Operational, Financial, Compliance, Reputational)
  6. Description
  7. Likelihood (1–5: Very Unlikely to Very Likely)
  8. Impact (1–5: Negligible to Catastrophic)
  9. Risk Owner (staff responsible for managing this risk)
  10. Controls in Place (existing mitigation measures)
  11. Click Save Risk.

The Risk Score is automatically calculated: Likelihood × Impact.

Risk Heat Map

A visual heat map shows all risks plotted by likelihood vs. impact. High-scoring risks (top-right) are priorities for immediate action.

Key Risk Indicators (KRIs)

KRIs are metrics used to monitor risk levels over time.

Examples: - Loan Portfolio at Risk (PAR) > 5% triggers a warning - Overdue levies > 20% of members triggers a warning

  1. Go to Risk → KRIs.
  2. Add KRI metrics and their threshold values.
  3. The system monitors and alerts when thresholds are breached.

Risk Incidents

When a risk event occurs (e.g., a fraud incident, system outage, or natural disaster):

  1. Go to Risk → Incidents.
  2. Click Report Incident.
  3. Enter the incident details, impact, and immediate response taken.
  4. Assign a follow-up action.

Risk Appetite

The Risk Appetite statement defines how much risk the cooperative is willing to accept. Administrators can document this in the Risk → Appetite section.

Tips

Tip

Review the risk register quarterly. Risks change over time — new risks emerge and old ones are resolved.

Tip

Loan default risk is often the most significant financial risk for cooperatives. Monitor the Loan Portfolio at Risk (PAR) metric weekly.