Assessing the Financial Performance of a Large Multi-purpose Cooperative: Foundation for Risk Treatment Blueprint

Rachel F. Fagyan

doi:10.54097/4kf4nm97

Authors

Rachel F. Fagyan

DOI:

https://doi.org/10.54097/4kf4nm97

Keywords:

Cooperative Governance, Industry Standards, Financial Statement Analysis

Abstract

Cooperative’s operations are inherently exposed to risks and effective risk management framework helps minimize losses and enhance sustainability. The study assessed the risk exposures of a large multi-purpose cooperative and proposed mitigation strategies utilizing mixed-method approach. Findings reveal loan delinquency, inadequate loan loss provisions, limited financing sources, and non-performing assets as major risk areas. These were assessed as either disastrous or critical risks. Proposed mitigating strategies include: updating policies, refining operational systems, and product and asset utilization analysis. The study concludes that liquidity and credit risks are the primary aspect affecting the cooperative’s financial performance.

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