To ensure the quality of the loan portfolio SFIC has implemented several risk
management strategies based on extensive market experience combined with global
best practices used by banks.

• Conservative collateral cover: conservative approach to collateral valuation ensures adequate
collateral to protect against defaults

• Systematic and in-depth assessment of creditworthiness of potential new customers: SFIC
uses a sophisticated credit scoring software to assess all loan applications. This system helps in
the analysis of all the potential risks while greatly enhancing the speed of the loan evaluation

• Regular portfolio review: constant review of the loan portfolio to flag any disturbing trends.
This information is used as a risk analysis tool. Key learnings from this review allow to predict
the repayment performance of approved loans and reject applications of negatively profiled,
high-risk borrowers

• Independent review: Apart from its own internal credit evaluation, SFIC uses several
independent parties to help validate the viability of accounts (i.e. Credit Management Ass. Of
the Philippines)

• Short term maturities: Risk is managed by focusing on the short term financing market. The
lending strategy can be adjusted proactively based on upcoming trends in the market