A N N UA L
R E P O R T
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RISK
MANAGEMENT
Given the ever-changing financial landscape in which the JMMB Group operates, we continuously monitor our operating environment. This is especially so for the territories in which we have a presence, namely Jamaica, Trinidad and Tobago and the Dominican Republic as well as markets that can impact the outlook for these jurisdictions, or any others, where the Group may have exposures in order to proactively manage our risks. Risk management is the process of identifying, measuring and mitigating risks to an organization’s capital and earnings. These risks stem from a wide variety of sources, including market related and internal factors which are discussed in the following sections.
MAJOR RISK RELATED DEVELOPMENTS FOR FY 2020/21 1 The FY 2020/21 can be characterized by significant market volatility, particularly in the equity and commodity markets in the first half of the financial year reflecting the economic uncertainty and recurring shocks to the global supply chain with successive lockdowns. However, with the development of vaccines with high efficacies, initiation of national vaccine drives and expansionary fiscal programs to support economic recovery, the global economy has begun to show signs of recovery, albeit unevenly as many sectors reopened, particularly in the service sectors such as Hospitality and Restaurants.
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See Appendix: Risk Related Regulations FY 2020/2021
