At Salem Ventures, we prioritize effective risk management to safeguard our investments and protect the long-term value of our portfolio.

1. Comprehensive Risk Assessment: Our risk management approach begins with a thorough assessment of the various types of risks associated with our investments, including market risks, operational risks, regulatory risks, and environmental, social, and governance (ESG) risks.
2. Risk Identification: We follow a comprehensive methodology to identify and evaluate potential risks, drawing on industry expertise, market data, and ongoing monitoring of our portfolio companies.
3. Risk Tolerance Levels: We have established clear risk tolerance levels that guide our investment decisions and portfolio management strategies, ensuring we strike the right balance between risk and return.
4. Mitigation Strategies: Based on our risk assessments, we implement tailored mitigation strategies to address and manage the identified risks, including diversification, hedging, and the implementation of robust governance and control mechanisms.
5. Ongoing Monitoring: We continuously monitor our portfolio, proactively identifying and addressing emerging risks, and making adjustments to our risk management approach as needed.
6. Contingency Planning: To further bolster our risk management capabilities, we have developed comprehensive contingency plans to address unforeseen circumstances and minimize the potential negative impacts on our portfolio.

By prioritizing effective risk management, we aim to safeguard our investments, protect the value we create for our investors, and ensure the long-term sustainability of our portfolio companies.