For some other new activities – such as the LSAP – we have received an indemnity from the Crown to cover the additional credit and interest rate risk from these holdings on our balance sheet.24 Equally, we are also aware that we need to have some appetite to take reputational risk to achieve our end goals.
Undertaking anything new or uncertain will always increase the need to explain our actions under a heightened degree of scrutiny. That said, delivering on our mandate while engaging successfully with all our stakeholders along the way should be reputation enhancing.