Requirements. HD Faculty's Risk Management Committee, from time to time, shall consist of at least three (3) directors of HD Faculty, and as many full time internal and external members as deemed fit and proper. Notwithstanding, a majority of the Risk Management Committee, from time to time, consists of outside directors, officers and risk specialists from each participating entity deemed necessary. Subject to the Board of Directors, in accordance with internationally accepted practices, the presiding Risk Management Committee is required to carry out a comprehensive examination of each plan, which includes, but is not limited to the following test of (a) logic, (b) soundness, (c) feasibility, and (d) quality of the plan.

Mandate. The Risk Management Team has been mandated to:

a.

Establish Key Elements;

b.

Prioritize Objectives (Reward Realization);

c.

Identify Threats and Opportunities;

Separate and Reorganize Acceptable Risk;

e.

Establish set priorities in line with the risk mitigation programs designed to avoid HD Faculty from risk exposures;

f.

Develop sustainable capability through alliances with governmental and institutional entities that will increase confidence and HD Faculty's ability to fulfil its business objectives and purposes, on time, each and every time;

Improve HD Faculty's execution plans through informed persons that understand the nature and extent of the respective risk and impact that it would have on HD Faculty;

h.

Establish and maintain risk monitor gauges that will identify, quantify and demonstrate HD Faculty's understanding and its effectiveness in respect to risk mitigation and control;

i.

Provide the Board of Directors with demonstrated assurance about HD Faculty's risk management achievements pertaining to its goals, purposes and objectives;

i.

Objectives of the Risk Management Program;

ii.

Identification and classification of risk factors;

iii.

Prioritization of the risk factors;

iv.

Assessment and evaluation of the respective risk;

v.

Quantifying the risk in a concise format;

vi.

Developing and/or redeveloping a risk mitigation and control system;

vii.

Developing and/or redeveloping a risk monitor and performance indication system; and

viii.

Establishing and maintaining a risk management system that enables HD Faculty and its clients to continuously improve the risk exposure through the exploitation of items (v), (vi), and (vii), above.

Loss Prevention Program Criteria. The criteria for determining whether a particular action in HD Faculty's loss prevention program should be taken, are divided into monetary and non-monetary.