Standards of Sound Business Practice
The Deposit Guarantee Corporation of Manitoba publishes and maintains the Standards of Sound Business Practice with which credit unions and caisses populaires must comply.
The following is a high-level overview of the four Standards of Sound Business Practice.
Standard 1 – Corporate Governance
Credit unions and caisses populaires must effectively direct, oversee, and manage their business activities and ensure that performance, accountability, and integrity are achieved.
Corporate Governance involves the following key elements:
Standard 2 – Strategic Management
Credit unions and caisses populaires must ensure that business operations are effectively planned, executed, and monitored.
Strategic Management includes the following key elements:
- Corporate Mission and Business Objectives
- Strategic Plan
Standard 3 – Risk Management
Credit unions and caisses populaires must have a comprehensive approach to identifying, managing, and controlling business and operating risks.
Risk management practices should address, at a minimum, the following risks:
- Human Resource Risk
- Credit Risk
- Asset/Liability Structure Risk
- Foreign Exchange Risk
- Capital Management Risk
- Liquidity Management Risk
- Outsourcing Risk
- Information Technology Risk
- Fiduciary Risk
Standard 4 – Internal Control Structure
Credit unions and caisses populaires must establish and maintain effective systems for internal control, and ensure these systems are reviewed and validated on a regular basis.
An effective internal control structure is comprised of the following key elements:
- Internal Control Environment and Internal Controls
- Audit Function