Risk Management system structure of RENOVA SG as one of the main components of corporate governance is focused on minimizing influence of any risk to the corporate financial status and its ability to perform assumed liabilities, as well as lead to potential loss of shareholder value. RENOVA SG monitors and controls its risks in compliance with the main ethical principles and limits approved by the Board of Directors. The Board of Directors determines medium- and long-term strategies and supervises Company’s operations.

Management Board, Risk Committee and other bodies responsible for risk management in due term submit reports on Company’s performance, information on risks and financial status for consideration and approval by the Board of Directors. Delegation of responsibilities and liabilities between supervising and executive bodies in RENOVA SG are based on the principles of corporate governance in order to monitor and control the following risks related to banking activities:

• Credit risk
• Country risk
• Market risk, including currency, interest and price risks
• Asset Liquidity loss risk
• Operational risk
• Compliance risk
• Legal risk
• Business reputation loss risk