Mr. Frank Brosnan:

First, I will refer to the operation of our prism engagement. What that means is that our supervisory teams go onsite within the credit unions. We have discussed it as a proportionate engagement. Arising from that engagement, we assess the credit unions under the key headings, whether that is credit risk, governance risk, strategic risk, business model risk, investment risk, etc. We give a report card to the credit unions. It is a very interactive and constructive engagement. We are not there to find fault. However, we do identify the risks and grade them in terms of their significance. It is a very well articulated framework. The credit unions understand it in advance of our going onsite. Arising from this, we develop what is called a risk mitigation programme. We show the risks we have identified. A credit union might have so many red risks and so many amber risks. Those are the ones they need to focus on. We give them a suggested remediation that should be put in place to address these weaknesses. We send that to the credit union in draft form. Our expectation is that they either accept it, come back with contrary evidence if they have it, or they suggest an alternative remediation which achieves the same objective that may be more palatable or more feasible from their perspective. That is the nature of our engagement. It is evidence-based engagement. Arising from that, we have an element of profile within the sector. The remediations are time-bound.

As the registrar said, it is not fair to quote a number because some credit unions meet the remediation actions and address the weakness. Therefore, that number shifts. We know where there are risks. If a heat map is done of the sector, we know areas in which weaknesses are emerging that are evidenced. We can also see other potential areas where we are beginning to see weaknesses develop further. We are calling those out. If we mentioned a number, the discussion would become about the number and would not be about the remediation. Our focus is on remediation and moving it on. Our aim is for everybody to be in the green zone, to use the traffic light analogy.