ANNUAL REPORT 2011 17. FINANCIAL RISK MANAGEMENT The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and  price risk), credit risk and liquidity risk. The Group therefore has an overall risk management program that focuses on the  unpredictability of financial and precious metal commodity markets and seeks to minimise potential adverse effects on the  financial performance of the Group. The Group uses different methods to measure different types of risk to which it is exposed including sensitivity analysis in the  case of interest rate, foreign exchange and other price risks and aging analysis for credit risk. The Group then uses derivative  financial instruments such as forward metal and forward metal option contracts to hedge certain risk exposures. Financial risk management is carried out by the finance area of the Group, under policies approved by the board of directors  with identification, evaluation and hedging of financial and commodity risks being undertaken in close co-operation with the  Group’s operating units. The board provides written principles for overall risk management as well as written policies covering  specific areas such as use of derivative financial instruments and investment of excess liquidity. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures,  primarily with respect to the US dollar. Foreign exchange risk arises from future commercial transactions and recognised  assets and liabilities denominated in a currency that is not the entity’s functional currency. The risk is measured using  sensitivity analysis and cash flow forecasting. The Group is also exposed to foreign exchange risk arising from the  translation of its foreign operations, the Group’s investments in its subsidiaries are not hedged as those currency positions  are considered to be long term in nature. The Group’s exposure to foreign currency risk at the end of the reporting period, expressed in Australian dollars, was as follows: (i) Foreign exchange risk Market Risk CONSOLIDA TED 2011  2010 $  $ Financial assets  Cash and cash equivalents  96,462,044  185,591,726 Receivables  12,177,421  7,965,927 Financial assets at fair value through profit and loss  42,424  7,657,558 Total financial assets  108,681,889  201,215,211 Financial liabilities  Payables  27,704,059  23,053,160 Derivative financial instruments  59,309,642  - Interest-bearing liabilities  80,211,381  - Total financial liabilities  167,225,082  23,053,160 The Group holds the following financial instruments: 2011  2010  USD  CFA USD  CFA $  $ $  $ Financial Assets Cash and cash equivalents  82,221,032 259,257 122,086,870 332,781 Receivables  10,136,384 1,672,009 7,830,251 - Financial assets at fair value through profit and loss  196 - 1,878,451 - Total Assets  92,357,612 1,931,266 131,795,572 332,781 Financial Liabilities  Payables 25,986,744 1,099,392 21,032,710 1,362,756 Derivative financial instruments 59,309,642 - - - Interest-bearing liabilities  80,211,381 - - - Total Liabilities  165,507,767 1,099,392 21,032,710 1,362,756 69