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RAKMHSUPOLICIES&PROCEDURESMANUALPolicy Code:9.8PolicyOwner:COOVersion& Date:Apr 2026(V 7.0)Page No.:Page 3of 8Liquidity RiskTo mitigate such risk, the management ensures the availability of diversified funding sources along with continuous monitoring of liquidity sufficiency regularly.%u2022Regular cash flow forecasting is a key indicator of future cash sufficiency, which helps provide an early alarm about any anticipated liquidity problems.%u2022Availability of easily accessible funding sources, either through equity or debt sources, should be maintained to quickly raise the necessary funds to meet any financial obligations and ensure the smooth running of operations.%u2022Reliable and sustainable relationships with banks and other financial institutions should be maintained to facilitate providing the necessary funds within a short period.Interest Rate RiskTo mitigate the risk of having lower rates on deposits or higher rates on term borrowing in light of the changes in interest rates prevailing in the market, the University%u2019s financial management should:%u2022Keep diversified ranges of maturities of its deposits, which allows quick reaction according to changes in the market rates.%u2022This method also reduces the exposure to the risk of losing the part or the whole returns on such deposits due to potential early liquidation of the deposits to meet emerging spending requirements.%u2022In addition, the University should regularly conduct a continuous revaluation and analysis of the market rates to maximize interest revenues on deposits and minimize interest expenses on borrowings.Accounts Receivable RiskThe accounts receivable risk mainly involves amounts due from students, sponsors, tenants,and other customers. The University mitigates the accounts receivable risk throughout:%u2022Continuous review of accounts receivable balances aging, identifying old accounts with a high probability of not being collected, setting strict internal controls and procedures, and seeking to reach settlements with parties with accumulated old receivablebalances.