RISK MANAGEMENT POLICY

The Risk Management Policy establishes the Risk Management framework for how the organization will conduct its risk management program.

Key Elements Include:

• Governance responsibilities - includes reporting requirements to the Board of Directors and establishing a Risk Management Committee.

• Statement of purpose and scope of the policy – integrate with the strategic objectives of the organization.

• Delegation of authority – identify who has the authority to commit the organization to specific transactions or contractual commitments within specified limits.

• Risk definitions – identify the types of risk the organization can accept as well as those that are unacceptable.

• Risk appetite and limits.

• Compliance and oversight – establish responsibility for oversight and compliance.

• Methodology for measuring and reporting risk.

• Allowed transaction types – the types and terms of transactions the organization can conduct and permissible hedge transactions.

• Risk reporting requirements – provision for frequency and format to report exposure.