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

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.