5- Corporate Governance

a . Financial Instruments
A financial instrument is a monetary contract between parties. We can create, trade, or modify
them. We can also settle them. A financial instrument may be evidence of ownership of part of
something, as in stocks and shares. Bonds, which are contractual rights to receive cash, are
financial instruments

b. Financial Profile
The term personal financial statement refers to a document or spreadsheet that outlines an
individual's financial position at a given point in time. The statement typically includes general
information about the individual, such as name and address, along with a breakdown of total
assets and liabilities

c. Treasury Transaction
Treasury Transaction means any derivative transaction entered into in connection with
protection against or to benefit from fluctuations in any rate, price, index or credit rating.

d. Internal Control
Internal control, as defined by accounting and auditing, is a process for assuring of an
organization's objectives in operational effectiveness and efficiency, reliable financial reporting,
and compliance with laws, regulations and policies.

e. Treasury Policies
Treasury policies govern many different treasury activities. For example:

- bank relationship management policy;

- FX risk policy;
- commodity risk policy;
- debt portfolio management policy;
- compliance (with loan documents) policy;
- interest rate risk policy; and
- surplus cash investment policy.

f. Preparedness
The term 'preparedness' refers to the ability of governments, professional response
organisations, communities and individuals to anticipate and respond effectively to the impact of
likely, imminent or current hazards, events or conditions.

g. Covenant
In legal and financial terminology, a covenant is a promise in an indenture, or any other formal
debt agreement, that certain activities will or will not be carried out or that certain thresholds will
be met. Covenants in finance most often relate to terms in a financial contract, such as a loan
document or bond issue stating the limits at which the borrower can further lend.

h. Reputational Risks
Reputational risk is a threat or danger to the good name or standing of a business or entity.
Reputational risk can occur in the following ways:

- Directly, as the result of the actions of the company itself

- Indirectly, due to the actions of an employee or employees
- Tangentially, through other peripheral parties, such as joint venture partners or suppliers

i. Compliance Information
The term compliance describes the ability to act according to an order, set of rules or request.

In the context of financial services businesses compliance operates at two levels.

Level 1 - compliance with the external rules that are imposed upon an organisation as a whole
Level 2 - compliance with internal systems of control that are imposed to achieve compliance
with the externally imposed rules

j. Audit Trail
An audit trail (also called audit log) is a security-relevant chronological record, set of records,
and/or destination and source of records that provide documentary evidence of the sequence of
activities that have affected at any time a specific operation, procedure, or event.

6. Stakeholder Relations

a. Risk Analytics
Risk analytics helps take the guesswork out of managing risk-related issues by using a range of
techniques and technologies to extrapolate insights, calculate likely scenarios, and predict
future events.

b. Proactive Communication
Proactive communications is a customer relationship lifecycle strategy used to increase
customer loyalty. It is related to the organizational psychology term proactivity, which states that
individuals should act based on anticipatory behavior rather than reacting to situations.

c. Credit Rating Agencies

credit rating agency is a company that assigns credit ratings, which rate a debtor's ability to pay
back debt by making timely principal and interest payments and the likelihood of default

d. Yield Enhancement
A “yield enhancement strategy” is a method of investing which involves buying options with
strike prices at the top and bottom of a specified range