23 August

BCP as Requirement for ACCESS Accreditation in 2020

  • Date : Sunday August 23, 2020
  • Venue :

 A special workshop on Business Continuity Plan was organized for the ACCESS credit unions in Nepal on August 21-23, 2020.  

ACCU recognizes that the lockdowns affected businesses of members. It has tremendously disrupted credit union business because members’ ability to pay has been affected. In response to the growing concern on increased delinquency, ACCU made the BCP as a requirement for credit unions seeking for accreditation.     
The program was attended by 56 leaders and managers from 28 Nepal SACCOS and one from SANASA Sri Lanka. 

For 2020 ACCESS accreditation, credit unions need to identify the risks, measure its impacts and develop an action plan to mitigate the risks.  The risk mitigation measures will be used by the ACCESS auditors to reach an objective judgment on the safety, soundness, and excellence of service of the credit unions.
Submitting the BCP is a requirement for ACCESS accreditation and helping those SACCOS in response to COVID-19 highlighting the following risks:

  • Member’s Ability to Pay:  The Risk Register should be supported by a scenario analysis on the number of members and amount of loans with a probability of going delinquent because of the "ability to pay" of the members have been impacted due to COVID 19. We are referring to members who lose their source of income like the daily wage earners and those whose businesses were stopped due to the lockdown.  The attached is a suggested template to prepare a loan Portfolio Risk assessment.
  • Institutional Capital: Based on the Portfolio Risk assessment projection, the credit union need to project the impact to the Net Institutional Capital should standard provisioning is applied. 
  • Ability to meet liquidity requirements: a liquidity assessment should be prepared at least for the next six months.

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