SINGAPORE CHINESE CHAMBER OF COMMERCE & INDUSTRY

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)

Liquidity risk

Liquidity risk is the risk that the Chamber will encounter in meeting financial obligations due to shortage of funds. The Chamber’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Chamber’s objective is to maintain a balance between continuity of funding and flexibility by monitoring and maintaining a level of cash and bank balances deemed adequate by the management to finance the Chamber’s operations and mitigate the effects of fluctuations in cash flows.

Analysis of financial instruments by remaining contractual maturities

The table below summarises the maturity profile of the Chamber’s financial assets and liabilities at the reporting date based on contractual undiscounted repayment obligations.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Chamber’s financial instruments will fluctuate because of changes in market interest rates. The Chamber’s exposure to interest rate risk arises primarily from their fixed deposits with financial institutions.

The sensitivity analysis for changes in interest rate is not disclosed as the effect on the profit or loss is not considered significant.