2. The Bank for International Settlements defines Market Risk is defined as the risk that the

value of on- or off-balance-sheet positions will be adversely affected by movements in

equity and interest rate markets, currency exchange rates and commodity prices. Key

influences and drivers of Market Risk are therefore:

A. Changes in the perceptions and likelihood that a corporation will default on its debt

obligations,

B. Changes in the Monetary Policy stance of a Central Bank resulting in the Central

Bank implementing an aggressive form of Quantitative easing by effectively

printing money,

C. The perception that something could happen, the likelihood of something

happening and the consequence of it happening,

D. An announcement by a key Sovereign Government that they intent to embark upon

a significant capital works program that will see unprecedented demand for Iron

Ore and other commodities,

E. All of the above.