** EGYTRANS ** Integrated Global Transport Services & Solutions

Investor Relations

Egyptian Transport and Commercial Services Co., S.A.E

1.	Establishment of EGYTRANS Risk Management Department

The focus on establishing a risk management department began as an initiative in the first half of 2007 within the framework of the continuous improvement that has become necessary given the rapid changes in internal and external factors especially with the application of corporate governance practices. Risk management acts to support the effective implementation of corporate governance as one of the tools for professional management and control.

In the second half of 2007, a decision was taken to establish the risk management department and merge it with the corporate governance department to become the Risk Management & Corporate Governance Department.

2.	Risk Management Department Objectives

•	Ensure that all related parties understand EGYTRANS risk management systems & procedures.

•	Ensure that all parties understand their responsibilities regarding how to manage risks associated with their activities.

•	Evaluate and improve the effectiveness of the internal auditing environment to enable taking corrective actions at the
	appropriate time

•	Prepare emergency plans to face any internal and external variables by identifying and evaluating the risks due to
	vulnerability to threats or weaknesses and risks due to not taking appropriate advantage of opportunities or
	strengths. The target is maximum sustainable value added to EGYTRANS activities in order to maximize the
	company’s total value.

•	Compliance with the EGYTRANS Risk Management Policy based on the risk management criteria certified by the
	Institute of Risk Management IRM, the AIRMIC-UK and the ISO/IEC Guide 73, resulting in a development in company
	strategies in light of this perspective. Achievements of Risk Management Department in 2007:

•	Preparing the company's 2008 risk map using an interactive risk evaluation form to enable the Board Audit
	Committee to evaluate the limits of the risks that the company may face to ensure sustained and balanced progress
	while taking into consideration the internal and external variables in an interactive framework.

•	Merging the concepts of risk management into the EGYTRANS work culture on all the organizational levels through
	awareness-building sessions about the technical methods of managing risks related to company activities.

•	Training some of the company employees to become risk management officers in different branches and
	departments and act as liaisons between all company staff and the corporate governance and risk management
	department and as consultants for the department in the area of technical risks.

3.	EGYTRANS Risk Management Department Framework

•	Financial risks
	Including all risks related to company assets and liabilities, this type of risk requires constant control and supervision according to market trends, prices, commissions, economic conditions and relationships with related parties such as banking institutions. For this type of risk there is the possibility for profit or loss.

•	Operational risks
	Including all risks resulting from day-to-day operations in all activities. For this type there is usually no opportunity for profit. The company may be subjected to a loss or avoid it but is unlikely to profit from this type of risk.

•	Market risks
	Including market variable risks resulting from economic changes that either total or partial (changes in the demand and supply structure) or through the change in asset market value due to the business cycle.

•	Legal risks
	All risks resulting from breaches of regulations, rules and systems that the company is required to comply with or resulting from ambiguity of the rights and obligations stemming from the company’s activities .

•	Reputation risks
	These risks may arise through negative public opinion of the company due to lack of competency in managing company systems efficiently.

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This page was last updated on 31/03/2008

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