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GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2018(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)(Continued)25. Risk management (continued)Concentrations of riskConcentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly afected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Group%u2019s results to developments afecting a particular industry. In order to avoid excessive concentrations of risk, the Group%u2019s procedures include specifc monitoring controls to focus on the maintenance of a diversifed portfolio.Currency riskCurrency risk is the risk that the value of a fnancial instrument will fuctuate due to changes in foreign exchange rates. Such exposure arises from sale or purchases by an operating unit in currencies other than the unit%u2019s functional currency. Management monitors its exposure to foreign currency fuctuations which is mainly the US currency and employs appropriate strategies to mitigate any potential losses.The sensitivity to a possible change in the US dollar exchange rate, with all other variables held constant, of the Group%u2019s proft before tax is as follows: Change in US Efect on proftdollar rates before tax $%u20190002018 5% increase 95% decrease (9)2017 5% increase 3205% decrease (320)104 GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES ANNUAL REPORT 2018