Mission Statement and Risk Appetite Statement

MISSION STATEMENT

Our purpose at Tuna Coast Properties (“TCP”) is to offer our customers and investors properties with quality assets (fishing and surf) at competitive prices allwith built in investment upside on the virtually untouched, breathtakingly beautiful, and cultural rich Panamanian Azuero Peninsula also known as the Tuna Coast.  The TCP team of real estate and investment professionals own and manage for their partnerships multitudes of magnificent properties.  Our customers and investors have an option to take majority interest in our holdings yet not have the hassles of overseas ownership.  TCP can also sell and manage for selected buyers these premier properties and initiate upgrade programs that ensure appreciation.

Additionally, TCP fully acknowledges that risk is inherent in all real estate activities; especially in the international real estate market with its unique risk landscape, requiring management to exercise an abundance of caution in dealing with customers, investors, counterparties, and the community.

RISK APPETITE STATEMENT

TCP Executive Management has established an aggregate moderate‐to‐low risk appetite, which is well within the Company’s overall risk capacity.  In managing to the risk appetite, the Company uses a holistic approach to identify, measure, monitor, control and report the risk to be assumed. At a high level, TCP’s guiding principles include:

• TCP Operates ‐ within an aggregate moderate to low risk appetite
• TCP Knows ‐ the customers, investors, and markets pursued
• TCP Understands –the risks, manages them and communicates effectively

In balancing the objectives set forth in our mission and vision statements with the interests of our customers, investors, team members, and communities.  TCP necessarily is exposed to varying levels of inherent risk in our risk pillars (credit, market, liquidity, operations, compliance, legal, strategic, and reputation).  Although TCP will continually assess and enhance the effectiveness of our controls, TCP is intentional about accepting a range of residual risks throughout the company, as TCP is in the business of taking risk.

TCP Operates within an Aggregate Moderate to Low Risk Appetite

1. TCP maintains sufficient levels of assets and revenue resources to carry out the TCP business plan.
2. TCP considers the following risk pillars: credit, market, liquidity, operations, compliance, legal, strategic, and reputation.
3. TCP’s risk appetite is a common point of reference governing the interconnections and interdependencies between the business strategies and risk profiles.

TCP Knows ‐ the customers, investors, markets, and businesses being
pursued
 
1. TCP creates market differentiation by differentiating on customer experience.  
2. TCP will not undertake a new real estate market without thoroughly analyzing, understanding, and controlling for the risks the Company incurs and ensuring TCP has the talent and resources to effectively manage those risks. 

TCP Understands – the risks manage them and communicate effectively
 
1. TCP Executive Management has oversight responsibilities for the company’s current and prospective risk‐taking activities.
2. All TCP team members are responsible for the identification and ownership of risk ‐ TCP  embraces the philosophy that “Everyone Owns Risk.”

3. TCP strives to be fully compliant with laws and regulations, and build processes and controls to promptly identify and correct potential breaches.
4. TCP will continue to invest in the control environments, risk data aggregation, and risk  reporting.
5. TCP diligently review 3rd party vendors and associated risks.