Catastrophe Risk Financing
Financial institutions are facing increasing scrutiny from regulators and the public regarding their management of operational risks including risks from catastrophic events. Accordingly CUPP Services and Central 1’s Cooperative Risk Solutions Department have prepared the attached reference for credit unions to refresh their risk assessment process and priority with regard to catastrophe risk financing.
Earthquake risk is the most obvious peril of concern to many credit unions operating in coastal areas, but the same process can be applied to mortgages throughout the province for fire, wind, and flood catastrophe risks. We believe it is prudent for every credit union in B.C. to study its catastrophe risk specific to mortgage portfolios to ensure that it is prepared to respond. If you have any questions about the document, process, or risk, please do not hesitate to contact:
Catastrophe risk financing document