The company is exposed to typical risks seen in international energy trading businesses, which typically include but are not limited to market, price and currency risks. For SET, the most relevant financial risks are volatility in commodity prices, currency exchange rates, and interest rates. As part of the company’s risk management framework, it is essential to ensure that all physical trading activities are hedged against any price fluctuations by using financial instruments such as derivatives and forward transactions. Risks arising from physical trading activities are being monitored, identified and mitigated by using adequate IT software systems backed by an integrated trading and risk management ETRM system (Aspect Enterprises). The respective processes are controlled and reported by a dedicated team. Selected measures such as daily position matching reports, constant limit monitoring and the use of VAR are only a few examples of how the risk management team monitors relevant business risks according to defined guidelines. In addition to market and price risks, there is a manifold of other operational, financial or geopolitical risks the company is potentially exposed to. In order to identify and mitigate these effectively, we continuously conduct standardized control mechanisms to evaluate and ascertain the solidity of our business transactions.