Risk and Compliance
Our ability to identify and mitigate risks is essential to LDC’s business viability and resilience, and fundamental to our reputation as a trusted partner. LDC is committed to conducting business ethically and in compliance with all applicable laws and regulations of the 100+ countries in which the Group is active.
Risk Management
We manage risk continuously, anticipating and responding to circumstances with the potential to impact our business. Our skill in identifying and mitigating risks is central to our reputation as a trusted and industry-leading global business and partner.
Key Principles
- We manage risk as an integral part of our business model, investing in risk management systems as a key competitive advantage.
- We enforce our clear and prudent risk procedures rigorously on a daily basis, measuring and setting tight limits on risk exposure using several methods.
- Our expert risk officers continually support the business to identify, quantify, monitor and mitigate risks.
- High-level committees are in place to oversee and govern key risks, and risk limits are approved at the level of our Supervisory Board.
Compliance
LDC operates a multifaceted compliance and ethics program tailored to our diverse and complex global trade flows and operations. Our compliance officers enforce its principles through various methods and ensure that employees are properly trained and aware of legislation affecting our business.
The compliance and ethics program covers five areas:
Trade Compliance
Focused on training, policies and controls to avoid any breach of our Code of Conduct and ethical standards, as well as anti-corruption and anti-money laundering laws and regulations.
Sanctions Compliance
Focused on training, policies and controls to ensure LDC’s activity remains compliant with applicable sanctions rules and regulations.
Regulatory Compliance
Focused on training, policies and controls to ensure LDC’s activity involving exchange traded or other regulated instruments remains compliant with applicable rules and regulations.
Sustainability Compliance
Focused on training, policies and controls to ensure LDC’s supply chain and traceability compliance requirements are adequately managed.
Compliance Monitoring
Leverages a data-driven, risk-based approach in pursuing the use of AI and coding to provide robust post-monitoring assurance on the abovementioned aspects of the Group’s compliance program.
Compliance Risk Management Measures
Accessing compliance anti-corruption policies through our Code of Conduct e-learning is compulsory for LDC employees, and all policies are housed on a central site for internal use. Risks are managed through the following levels:
Transactional
LDC policies require employees to consult the compliance team prior to higher risk transactions.
Strategy Alignment
Compliance resources and priorities are re-allocated according to LDC’s strategic direction, ensuring that compliance risk factors are considered for new business activity and transactions.
Ad-hoc Risk Assessment
Compliance officers conduct periodic reviews of higher risk activities or locations.
Monitoring
A dedicated team leverages AI, data analytics and business intelligence to identify risks of anti-corruption policy breaches.
Risk and Compliance Governance
Committees comprising top company executives as well as Senior Heads of Platform, Region and Function, oversee and steer compliance and risk matters at LDC through regular or ad hoc meetings as needed.
Various committees ensure quantitative and qualitative risk monitoring.
- The Macro Committee covers all market-related price risks, risk concentration and overall portfolio concentration.
- The Credit Committee covers credit, country, treasury, political and insurance risks.
- The Arbitration, Disputes & Litigation Committee covers all commercial disputes.
- The Compliance & Internal Audit Committee is responsible for regulatory, trade and sanctions compliance, as well as internal audit.
Seeking Advice & Raising Concerns
LDC has also implemented a confidential ethics hotline for reporting of any concerns relating to breach of ethical conduct, available to both employees and external third parties. Allegations regarding compliance are raised to the Board, and concerns around fraud activity are raised to the Audit Committee.
If you have a concern about the conduct of any LDC employee or anyone representing LDC, you may use LDC’s EthicsPoint, which is a secure and confidential method for reporting issues or concerns.
