As cooperatives continue to expand their role in providing financial services and economic opportunities to communities, ensuring that they remain resilient and well-managed becomes increasingly important. With this in mind, the Cooperative Development Authority – Cordillera Administrative Region Extension Office (CDA-CAR EO) conducted the pilot implementation of the Risk-Based Supervision and Examination for Cooperatives Engaged in Lending (RBSEM-CEL) in Treasure Link Cooperative Society (TLCS) and Taloy Farmers Multipurpose Cooperative (TAFARMCO) from May 25 to 29, 2026.

The activity marks an important step in the CDA’s efforts to modernize the way cooperatives are supervised and examined. Rather than focusing solely on compliance with regulatory requirements, the RBSEM-CEL framework takes a broader view by examining the risks that may affect a cooperative’s operations, financial health, governance, sustainability, and ability to stay true to its mission.

Throughout the five-day pilot examination, CDA-CAR EO personnel worked closely with the officers, directors, management staff, and employees of both cooperatives. Together, they reviewed governance practices, financial performance, internal controls, risk management systems, and compliance mechanisms. More importantly, the exercise provided an opportunity for meaningful discussions on how cooperatives can better identify risks, address emerging challenges, and strengthen their overall operations.

The active participation of TLCS and TAFARMCO played a vital role in the success of the pilot implementation. Cooperative leaders and staff openly shared their experiences, provided necessary documents, and engaged in discussions that allowed both the CDA and the cooperatives to gain valuable insights into existing practices and areas for improvement.

Beyond being an examination activity, the pilot implementation served as a learning experience for everyone involved. It helped cooperative officers and staff better understand the importance of risk management and how a proactive approach can help protect the interests of members, improve decision-making, and ensure the long-term stability of their organizations.

For CDA-CAR EO, the pilot implementation was also an opportunity to test and validate the RBSEM-CEL framework before its planned rollout to other cooperatives in the region during the 2027 inspection cycle. Lessons learned and recommendations gathered from the activity will help refine examination tools and procedures to make them more responsive to the realities faced by cooperatives engaged in lending operations.

As the cooperative sector continues to evolve, risk-based supervision offers a more dynamic approach to ensuring that cooperatives remain financially sound, well-governed, and capable of serving their members effectively. By identifying potential vulnerabilities early and encouraging timely corrective actions, the framework aims to help cooperatives become more resilient in an increasingly complex operating environment.

The examination was carried out by teams of CDA-CAR EO Cooperative Development Specialists II serving as examiners under the supervision of designated lead examiners. For TLCS, Ms. Jackeline A. Balay-odao served as Lead Examiner, assisted by Ms. Karryl G. Agusdan, Ms. Joy C. Marrero, and Ms. Nellie C. Tanglib. Meanwhile, Mr. Kristoffer Erik D. Uy served as Lead Examiner for TAFARMCO, with Mr. Francis John Carlo M. Castillo, Mr. Mark Erick E. Menzi, and Mr. Parity L. Nga-awan III serving as members of the examination team.

The successful pilot implementation in TLCS and TAFARMCO represents more than just a new examination process. It signals a shared commitment between the CDA and cooperatives to embrace continuous improvement, strengthen governance, and build institutions that can better withstand risks while continuing to provide quality services to their members.

As CDA-CAR EO prepares for the wider implementation of the RBSEM-CEL framework, the experience gained from these pilot cooperatives will help shape a more responsive, forward-looking, and sustainable approach to cooperative supervision in the Cordillera region. – MEEM