RMG’s oversight of risk is based on the following five principles:  RMG, which is responsible for assessing and monitoring risks across Macquarie, is independent of the operating areas of  Macquarie, and the Head of RMG, as Macquarie’s CRO, reports directly to the CEO with a secondary reporting line to the Board  Risk Committee. RMG approval is required for all material risk acceptance decisions. RMG’s responsibility covers the whole of Macquarie. Therefore, it can assess risks from a Macquarie-wide perspective and provide  a consistent approach across all operating areas. Operating areas cannot undertake new businesses or activities, offer new products, or enter new markets without first consulting  RMG. RMG reviews and assesses risk and sets prudential limits. Where appropriate, these limits are approved by the Executive  Committee and the Board. RMG continually reviews risks to account for changes in market circumstances and developments within Macquarie’s operating  areas. Centralised systems exist to allow RMG to monitor credit and market risks daily. RMG staff liaise closely with operating and support  divisions. Effective risk management is not only a function of disciplined processes but also of imaginative analysis by talented individuals.  RMG attracts high calibre candidates. It recruits experienced individuals both from within Macquarie and externally and is a source  of talent for Macquarie’s Operating Groups when recruiting.  While RMG is structured into specialist teams as detailed below, we employ an integrated approach to risk analysis and  management across risk classes. RMG’s assessment and monitoring of risks involves a collaborative effort across the teams  to ensure that a detailed analysis takes place both at the individual and aggregate risk level. RMG structure and resourcing Frequent monitoring  Continuous assessment  Approval of all new business activities  Centralised prudential management Independence  Risk Management Group 25  *Financial Crimes Compliance includes Anti-money laundering, Anti-bribery & Corruption and Sanctions 