Man Group's investment businesses each have

clearly defined investment processes designed to

target and deliver on the investment mandate of each

product. We focus on hiring and retaining highly skilled

professionals who are incentivised to perform within the parameters of their mandate.

�

Man Group's diversified range of products and strategies

limits the risk to the business from underperformance

of any particular strategy.

Business and investment processes are designed

with a view to minimise the impact of losing any key

individuals. Diversification of strategies reduces the

overall risk to Man Group.

�

Succession plans and deferred compensation schemes are in place to support the retention of senior

investment professionals and key management.

Man Group diversifies its deposits across a number

of strong financial counterparties, each of which is

approved and regularly reviewed for creditworthiness

by the Counterparty Monitoring Committee (CMC).

The CMC also oversees contingency planning ahead

of significant market or political events.

�

The Group Risk function monitors credit metrics,

such as CDS spreads and ratings, of the approved

counterparties on a daily basis.

Man Group has access to a revolving credit facility (RCF),

and maintains a liquidity surplus. Liquidity forecasting,

including downside cases, facilitates planning and

informs decision making.

�

The investment risk teams conduct regular liquidity

tests on Man Group's funds as well as peer fund reviews.

We endeavour to manage resources in such a way

as to meet all demands for fund redemptions according

to contractual terms.

A disciplined framework ensures that each request for

seed capital is assessed on its risk and return on capital.

�

Approvals are granted by a Seed Investment Committee

(SIC), which is comprised of senior management, Risk

and Treasury. Investments are subject to risk limits, an

exit strategy and are hedged to a benchmark where

appropriate. The positions and hedges are monitored

regularly by Group Risk and reviewed by the SIC.

The UK pension plan has a low net exposure to UK interest rates. The return seeking assets are low volatility and have a low correlation to equity markets. Longevity is the largest remaining risk, but is uncorrelated to Man Group's other risks.

The Group's risk management framework and

internal control systems are based on a three lines

of defence model.

�

Internal Audit evaluates the effectiveness of the Group's

risk management, control and governance processes.

Man Group's operations team has implemented a robust

methodology (including ongoing third-party due diligence

and KPI monitoring) to confirm that outsourced service

providers are delivering as required.

Man Group has a mature information security

management programme which governs current

and future strategy.

�

The Group has deployed cyber controls and countermeasures

which are continuously reviewed, maintained

and adjusted in line with our assessments and those

of trusted advisors. These security mechanisms are

deployed in a layered defence involving preventative,

detective, reactive and recovery controls. If one control

fails, other controls are in place to detect, prevent or

counter an attack. To keep pace with emerging risks,

some of the technology solutions are utilising

machine learning, artificial intelligence (AI) and

behavioural analysis.

�

The Group has a cyber-risk training programme and

has commissioned independent threat and security

assessments, including simulated staged attacks on our network to test our detection and response capability.

The Group recognises the fundamental role of

technology in delivering its objectives and IT functions

work closely with other business units to ensure work

is correctly prioritised and financed. The prioritisation

process considers the lifecycle of both hardware and

software to ensure both are adequately supported and

sized. The Group's operational processes include mature

risk, incident and problem management procedures to

minimise the likelihood and impact of technology failures.

Man Group operates a global legal and compliance

framework which underpins all aspects of its business

and is resourced by experienced teams. These teams are physically located in Man Group's key jurisdictions,

helping them to understand the context and impact

of any requirements.

�

Emphasis is placed on proactively analysing new legal

and regulatory developments to assess likely impacts

and mitigate risks.

�

Man Group continues to liaise directly and indirectly

with competent authorities e.g. FCA, SEC, FINMA, CBI.

Man Group has upgraded the regulatory permissions

of its Irish entity and has opened an office in Dublin

to serve European clients.

�

The fund risk toolkit includes market and liquidity scenarios focused on downside Brexit risks.

Our reputation is dependent on both our operational

and fund performance. Our governance and control

structure mitigates operational concerns, and our

attention to people and investment processes are

designed to comply with accepted standards of

investment management practice.

The Board and Group Risk monitor emerging risks,

trends and changes in the likelihood of impact.

This assessment informs the universe of principal

risks faced by the firm.