Risk Oversight  

As a holding company, the Corporation has the risks associated with being a significant shareholder in its subsidiary operating companies. The subsidiaries’ Boards are responsible for the risk oversight function at those companies. The officers of the Corporation are members of these Boards and participate in the risk oversight function at the operating company level in their role as directors of those companies. As a direct shareholder of companies operating in the financial services sector, the Corporation is well aware of the particular necessity for robust risk identification and risk management oversight.

As for risk oversight at the Corporation’s level, the Board considers identifying and managing risk, and taking a long-term view when making investments and managing the assets of the Corporation, to be of imperative importance. This approach is rooted within the culture of the Corporation and is supported by the Corporation’s controlling shareholder, which has placed a premium on enduring viability, stability, diversification and cash flow, rather than on short-term results. The Corporation believes that value is best achieved through a prudent approach to risk and through a governance model that focuses on the active oversight of our investments. The Board has overall responsibility for monitoring the implementation and maintenance by management of appropriate policies and controls to manage the risks associated with the Corporation’s businesses as a holding company. The Board addresses risks related to financial reporting, compensation policies and practices, and governance matters, including risks related to any proposed transactions with related parties of the Corporation.