Cuxheaven Group has established a robust risk management framework and control environment designed to reduce the inherent risks of trading to acceptable levels aligned with the company's overall risk appetite. This appetite is defined and governed by our shareholders and Board of Directors through:

• A defined group economic capital limit.
• Portfolio risk limits across various risk categories.
• An approved risk limit registry detailing all active trading mandates.

Our risk management framework is supported by a comprehensive suite of policies, procedures, and delegated authorities. We adhere strictly to the following core principles:

• Daily monitoring of compliance with all relevant risk policies and limits by the dedicated risk management function.
• Immediate action and strict escalation procedures in the event of policy breaches to ensure both Cuxheaven and its operations are fully protected.
• Timely, data-driven reporting—delivered daily, weekly, and monthly—providing management with both quantitative and qualitative insights into business risks.
• Ongoing assessment of transactional and broader business risks to proactively address changes in the Group’s risk profile.

In the course of its trading activities, Cuxheaven assumes certain commodity price risks. Residual basis risks are carefully managed within established limits, while counterparty credit risk is addressed through a highly conservative approach. Credit limits are set by our credit function for all trading partners, with further portfolio-wide concentration limits in place. Our top priority is securing first-class collateral or adequate risk coverage, thereby ensuring the risk of significant financial loss remains negligible. Cuxheaven's structured, risk-aware business approach—combined with deep industry expertise—enables us to manage exposures effectively. This makes us a dependable and trusted trading partner within the global commodities market.