Risk Management

Our approach to managing operational and market risks.

1. Risk Management Philosophy & Core Objectives

MY INVESTMENT MARKETS (the "Company") operates under a sophisticated risk management philosophy that integrates risk oversight into every facet of our strategic planning and daily business activities. As a regulated Investment Dealer, we acknowledge that exposure to market volatility, operational disruptions, and global economic shifts is inherent. Our primary objective is to manage this exposure to protect prospective earnings and capital stability.

2. The 'Three-Lines-of-Defence' Governance Model

To ensure clear accountability and objective oversight, the Company has adopted the globally recognized 'Three-Lines-of-Defence' model:

•1st Line (Management Control): Operational managers identify and manage risks within their daily processes.

•2nd Line (Risk & Compliance): Our dedicated Compliance and Risk functions design and deploy the overall frameworks.

•3rd Line (Independent Audit): Independent auditors provide final assurance that the risk management process is functioning as designed.

3. Strategic Risk Mitigation: The 4-T Strategy

Our operational environment is managed through the "4-T Strategy":

•Treat: Implementing proactive controls to reduce the likelihood or impact of identified risks.

•Transfer: Mitigating financial exposure by shifting risks to third-party liquidity providers or through insurance.

•Tolerate: Acknowledging risks where the impact is within an acceptable range.

•Terminate: Redesigning business processes to completely eliminate specific risk categories.

4. Enterprise Risk Framework & COSO Standards

Our Risk Management Framework is fully aligned with the COSO (Committee of Sponsoring Organizations of the Treadway Commission) Enterprise Risk Management (ERM) standard. This benchmark allows the Company to integrate insight, oversight, and governance into a seamless cycle.

5. Comprehensive Risk Profile & Mitigation Examples

We continuously identify and review exposures across multiple risk dimensions:

•Strategic Risk: Monitoring management decisions and external market conditions.

•Operational Risk: Safeguarding against failures in internal processes, systems, or human error.

•Financial Risk: Rigorous capital management and liquidity stress testing.

•Financial Crime Risk: Stringent AML/CFT procedures to detect and prevent fraud.

6. Product, Geographical & Periodic Oversight

The Company adopts a Risk-Based Approach (RBA) tailored to the nature of CFD transactions. We apply strict geographical screening via our AML Country Risk Matrix. Furthermore, we maintain a Periodic Review Schedule (Refresh/Re-screen) for all client files, ranging from semi-annual to biennial intervals.

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