Page 81 - Nanyang Technological University

ON A RAPID RISE

NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

29 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT (cont’d)

Overview

The Group has exposure to the following risks from its use of financial instruments:

• credit risk
• liquidity risk
• interest risk
• price risk
• foreign currency risk
• capital risk

This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives,
policies and processes for measuring and managing risk, and the Group’s management of capital. Further
quantitative disclosures are included throughout these financial statements.

Credit risk management

Cash and investments in financial assets

Cash and deposits are placed with reputable financial institutions. Investment portfolios are managed by external
fund managers.

The maximum exposure to credit risk in the event that the counterparties fail to perform their obligations in relation
to each class of recognised financial asset is the carrying amount of those assets as stated in the statements of
financial position.

The credit risk is diversified over a range of institutions.

Trade and other receivables

Credit risk is the potential loss resulting from the failure of a customer or a counterparty to settle its financial and
contractual obligations to the Group, as and when they fall due.

NANYANG TECHNOLOGICAL UNIVERSITY AND ITS SUBSIDIARIES 79