Community CPS Australia Group Structure

The Community CPS Australia Group provides financial services to its members. The entities comprising, and the construct of, the Group are detailed below:

 

Capital Instruments – Group capital is exclusively internally generated and comprises retained earnings and reserves. There is no external capital support.

Pillar 1

• Credit Risk – arising from lending and treasury activities
• Market Risk – arising from mismatches in interest rate terms
• Operational Risk – ‘the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events'

Pillar 2

Incorporates other risks not covered in Pillar 1 which are applicable to the business.

These risks are quantified and a level of capital is then assigned to that risk.  The quantification of each risk is reviewed at least annually or with any material change in the nature of Community CPS' business activities, permitting the level of capital assigned to each risk to also be adjusted.  This gives the Directors comfort that the level of capital held is appropriate for the current assessment of Community CPS' risks.