content_image/204304.jpg content_image/204305.jpg
## Cardno Limited and its Controlled Entities for the year ended 30 June 2010 

## 32. KEY MANAGEMENT PERSONNEL DISCLOSURES CONTINUED 

The aggregate amounts recognised during the year relating to key management personnel and their related parties were as follows: 

(i) Mr A D Buckley was a Director of CBD Professional Services Pty Ltd (until 17 December 2009). The aggregate amount the consolidated entity billed for services performed by Mr Buckley was $20,688 (2009: $25,220). The consolidated entity also used Carter Newell Lawyers (associated with CBD Professional Services Pty Ltd) for legal advice throughout the year and the aggregate amount of fees expensed was $651 (2009: $5,136). 

## 33. FINANCIAL RISK MANAGEMENT 

The main risks arising from the Group’s financial instruments are interest rate risk, foreign exchange risk, credit risk and liquidity risk. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchange risks and ageing analysis for credit risk. The Board through the Audit, Risk & Compliance Committee reviews and agrees policies for managing these risks and ensures strategies are implemented in the business. A Quality Management System and an Operational Risk Committee supports consistent risk mitigation practices and procedures in order to maintain a consistent level of quality across the Group which includes the minimisation of risk. The policies for managing each of the Group’s risks are summarised below and remain unchanged from the prior year. 

The Group holds the following financial instruments: 

<img src='content_image/204304.jpg'>

## Credit risk 

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers. 

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as summarised above. 

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on customers in accordance with the policy. The Group does not require collateral in respect of financial assets. Investments are allowed only in liquid securities and only with counterparties that have a credit rating equal to or better than an approved rating. There are no significant concentrations of credit risk within the Group. 

The maximum exposure to credit risk for trade receivables at the reporting date by geographic region was: 

<img src='content_image/204305.jpg'>

