Purpose and scope

Cap is a research-based financial guarantee company with a specialist focus on statistical and mathematical inference in risk management and global markets. This Responsible Management Policy, which complements the Corporate Social Responsibility Policy, explains Cap's commitment to responsible management and the application of the policy to its business and financial guarantee strategies. The Policy is maintained by Cap's ESG Committee, which is chaired by the company's Chief Operating Officer and is responsible for coordinating its responsible management, corporate social responsibility and diversity & inclusion efforts.

Industry engagement

Cap has a history of engaging with other industry participants to improve practices and promote high standards.

Cap has publicly committed to adopting and implementing an aspirational set of principles for incorporating Environmental, Social and Governance (“ESG”) issues into its financial guarantee services.

Accountability and responsible implementation

Cap's quantitative strategies are implemented by computer programs but are designed and managed by people. The company places significant emphasis on its team of professionals acting with the highest legal, ethical and professional standards.

These professionals − who include Cap's strategy managers and operations staff − are responsible for ensuring that: 1) the company acts responsibly in the global marketplace; 2) the company is making decisions that comply with client mandates; and 3) any financial guarantees provided are in line with the client's expectations.

To that end, a key aspect of Cap's monitoring programme is measuring the market impact of its financial guarantees, and that of other market participants operating similar strategies. In doing this, Cap aims to identify risk factors. These include market event risk, which is the possibility that an unforeseen event such as a natural disaster could cause sudden and extreme shifts; and systemic risk, which includes the risk of overcrowding in specific markets that could lead to market dislocation and take steps to mitigate such risks.

Cap believes that its participation in a wide range of financial guarantee environments contributes positively to well-functioning markets by providing liquidity and aiding discovery.

Responsible mangement policy governance

Cap's ESG Committee is chaired by the company's Chief Operating Officer and is responsible for overseeing the implementation of the company's ESG strategy, including responsible management, by relevant departments and reviewing the effectiveness of internal processes, policies and procedures where relevant to ESG matters.

In turn, the ESG Committee has assigned responsibility for the implementation of each aspect of the Responsible Management Policy to the appropriate teams within the company. Senior level oversight and accountability is provided by Cap's senior management team and through its relevant governance meetings.