Short-term outlook for risks dynamics

• Political and economic — as uncertainty persists regarding future oil price movements, we expect the political and economic risks to remain high in 2016.
• HR — this type of risk will remain neutral, given that most ongoing activities are long-term; however, staff turnover remains low.
• Regulatory and legal — since Moscow Exchange’s strategic objectives include the standardisation of the Company’s financial infrastructure and the development of its product line, the regulatory and legal risks will continue to have a high impact on the Exchange’s activities; however, taking into account ongoing activities, we do not expect a significant increase in the regulatory and legal risk.
• Reputational — we expect the reputational risk to decrease on the back of several major marketing activities planned for the near future, which will contribute to enhancing Moscow Exchange’s image.
• Operational — the Stabilisation and Reliability programme being implemented will reduce the operational risk; however, the full effect of the programme will be visible only in the long term.
• Sanctions — there is currently no basis for any increase in the sanctions risks.
• Information security — plans to upgrade the Exchange’s key information systems will keep information security risks elevated.