Disciplined risk management is fundamental

Through a disciplined risk management approach, Provident Energy will provide stable distributions over the long term.

Risk Management

Provident’s risk management program is a key management tool employed by the Trust to deliver more stable distributions by identifying, monitoring, measuring and mitigating external and internal risks that could affect cash flow. Provident’s definition of risk is broad and so too are the policies and procedures the Trust employs to mitigate the affects certain risks have on cash flow and the stability of distributions. Current mitigation policies and procedures are listed below.

Integrated Risk Management

Commodity

Credit

Operational

Strategic

Cultural

Mitigation Policies / Procedures

•		Commodity Price Risk Management Program (CPRMP)

•		FX exchange hedging in conjunction with CPRMP

•		Centralized monitoring and measurement of risk programs

•		Established risk parameters

•		Executive risk committee

•		Credit policies and procedures

•		Centralized monitoring and measurement of risk programs

•		Established risk parameters

•		Executive risk committee

•		EH&S procedures, training, reporting

•		Operational reporting and monitoring

•		Business interruption planning and insurance

•		Third party independent reserve evaluation

•		Annual strategic planning process

•		Board level participation in strategy

•		Established annual objectives and metrics

•		Aligned compensation

•		R.I.C.E.

•		Independent board of directors

•		Established/ reviewed governance practices

•		Code of Conduct

•		Disclosure Policies

•		Internal communica- tions

•		Financial controls

•		Community Investment Program

Financial Risk Management