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Corporate Governance

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Risk Management

Risk is an inherent part of our business as a brokerage. Proper risk management is an indication of professionalism and seriousness of any institution in the financial sector, including brokerages.

Proper risk management is one of the cornerstones of Ultraserfinco´s philosophy.  We want to develop profitable and long-lasting relationships with our clients. This is done in a controlled manner, in order to meet the expectations of every interest group.

With this in mind, Ultraserfinco S.A. has put together a team of highly qualified individuals, supported by a suitable technological infrastructure. This allows them to evaluate, identify, measure, monitor, control and optimize a client´s risk exposure present in the market

Taking into account the conditions under which the activity takes place, it is important to highlight that there may be several variations within the conditions themselves. It may become necessary to implement mechanisms that allow detection and action on risks associated with change.

Risk evaluation at Ultraserfinco S.A. Consists of the following strategies (among others):


1. Risk Management System for Money Laundering and Financing Terrorism. “SARLAFT”:

The money laundering and terrorism financing risk consists of the possibility of loss or damage that ULTRASERFINCO S.A. may suffer when being used directly or indirectly or through its operations as a means for laundering money and/or channeling funds towards activities considered criminal or illegal according to the regulations in force, or when they intend to hide assets coming from these activities.

The SARLAFT risk to which Ultraserfinco S.A exposes itself materializes through associated risks such as legal, reputational, operational and by contamination, and the consequent negative economic effects that they may represent to its financial stability when it is used for such activities.

This system covers all the activities that take place in line with Ultraserfinco S.A.’s social object and includes the identification, measurement, control and monitoring stages. That is why we at Ultraserfinco S.A. have a Risk Management department that manages this process through its compliance officer. It consists of policies, procedures, control mechanisms, documentation, information distribution, training and reporting.

2. Operation risk management system “SARO”:

Operational risk is defined as the possibility of incurring loss caused by either flaws or weaknesses in processes, staff, systems or external events. Within this category we also find legal and reputational risk. For this reason ULTRASERFINCO S.A. has the Operational Risk area, an area of the Risk Management department in charge of managing this process. It consists of policies, procedures, documentation, event registration, control mechanisms, technological platform, information distribution and training; Elements that are intended to ensure a responsible and effective operational risk management.

3. Liquidity Risk Management System “SARL”:

Liquidity risk is defined as the possibility of not being able to meet payment obligations in a full and timely manner. This manifests itself through the lack of available liquid assets to make payments and/or through the need to assume unusual funding costs, in other words, it involves incurring losses due to the need to liquidate a financial asset in the market in advance.

In order to measure this risk Ultraserfinco S.A. has adopted a regulatory model for measurement and control.

4. Market Risk Management System “SARM”:

Market risk is the possibility of incurring losses in value of Ultraserfinco S.A.’s active, passive or contingent positions because of changes in variables such as interest rates, exchange rates and inflation, among others, that may have a negative effect on the entity’s portfolio, exceeding the amount that the entity had previously defined and is willing to accept.

Insurance policy coverage:

Ultraserfinco - for its activities as a brokerage firm, mutual funds management, third parties portfolios and private equity- has an insurance policy that covers, among other things, civil liability for negligent actions or omissions by directors, managers or anyone under contract, loss or damage caused to the broker by acts of infidelity by the directors, managers, or anyone under contract, loss or damage to assets in the insured’s establishment, loss or damage to assets in transit that are under the insured’s custody, loss or damage caused by fraud or alteration of documents, loss or damage caused by counterfeit money, loss or damage caused by fraud through computerized systems and loss or damage caused by incomplete transactions.

The insured amount has been determined by Ultraserfinco based on the analysis of the risks associated with the activity and is within a suitable range for an entity of its nature.