Notes To The Financial Statements 30 June 2015 11.1 Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rates. The organisation has a borrowing that is subject to a fixed interest rate. Details of the organisation's borrowings are described in Note 15. The Board of Trustees is dedicated to reviewing the loan exposures and repayment plans for the organisation's external borrowings. The Board of Trustees reviews the loan exposures, meets on regular basis and uses various models to project the organisation's risk exposures and proposes methods to deal with the risk arising in an appropriate manner. The Board of Trustees also approves the term sheets for such borrowing, and ensures that the interest rate exposure of the organisation is appropriately managed. 11.2 Credit risk Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The organisation is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities, including deposits with banks and financial institution and other financial instruments. Financial assets, which potentially subject the organisation to concentration of credit risk, consist of accounts receivable and cash. The organisation’s cash equivalents are placed with high credit quality financial institutions. Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: Carrying amount 2015 US$ 2014 US$ Other receivables Cash and cash equivalents 2 772 59 178 112 107 196 202 Balance at 30 June 2015 61 950 308 309 Legal Resources Foundation Annual Report 2015 57