Notes to Consolidated Financial Statements [in thousands of Canadian dollars, except per share amounts] December 31, 2012 and 2011 Financial liabilities are classified into two categories, FVPL and other liabilities. Included in accounts payable and accrued  liabilities as at December 31, 2012 is $2,940 classified as Level 1 fair value hierarchy [December 31, 2011 – $460]. Other  liabilities include accounts payable and accrued liabilities of $115,250 [December 31, 2011 - $118,745], dividends payable of  $45,254 [December 31, 2011 - $42,526] and long-term debt of $594,368 [December 31, 2011 - $780,355].  For all other financial assets and financial liabilities, the carrying value approximates fair value due to the short-term nature  of these instruments. Risk management is an integrated process with independent oversight. CI’s management and compliance group has  established a control environment that ensures risks are reviewed regularly and that risk controls throughout CI are  operating in accordance with regulatory requirements. CI’s senior management takes an active role in the risk management  process by reviewing policies and procedures within each business segment and assessing and mitigating the various  financial risks that could impact CI’s financial position and results of operations. CI’s financial instruments bear the following fi nancial risks: Market risk is the risk of a financial loss resulting from adverse changes in underlying market factors, such as interest  rates, foreign exchange rates, and equity prices. Management of CI’s market risk is the responsibility of the Chief Financial  Officer. The corporate finance group reviews the exposure to interest rate risk, foreign currency risk and equity risk  by identifying, monitoring and reporting potential market risks to the Chief Financial Officer. A description of each  component of market risk is described below: CI’s financial performance is indirectly exposed to market risk. Any decline in financial markets or lack of sustained growth  in such markets may result in a corresponding decline in the performance and may adversely affect CI’s assets under  management and fi nancial results.   Equity risk is the risk of gain or loss due to the changes in the prices and the volatility of individual equity instruments  and equity indexes.  Foreign exchange risk is the risk of gain or loss due to volatility of foreign exchange rates.  Interest rate risk is the risk of gain or loss due to the volatility of interest rates. 78 11. RISK MANAGEMENT [A] MARKET RISK