Home ownershipRisk management2
IBA manages risk by having prudent lending policies and processes, employing experienced staff to oversee lending activities, and adopting a flexible approach whereby each case is considered on its merits.
Although IBA’s loan receivables are considered riskier than those of mainstream lenders, IBA is conscious of its fiscal obligations to maintain and grow a capital base to support future home lending and achieve our core objective of increasing Indigenous home ownership. IBA accepts a lower rate of return than commercial home lenders would accept given the same level of risk. The risk and return characteristics that IBA accepts are reflected in the fair valuation of its loan portfolio, detailed in the accompanying financial statements.
To manage external risks, including changes in market conditions, IBA conducts routine risk identification and assessment, and implements controls to minimise the occurrence and impact of risk.