A version 2 credit union must establish, maintain and implement an up-to-date financial risk management policy statement approved by the committee of management.
This policy should address both interest rate and funding risk. It should cover aggregate limits on holdings of investments and borrowings from sources other than members. It should deal with avoidance of funding concentrations (both source and time-band concentrations) and should detail the organisational arrangements, systems and controls in respect of these matters.
A credit union's committee of management should review and approve its financial risk management policy at least once a year, and more frequently if necessary, especially in light of significant changes in business.