b'Appendices Appendix 4 GENOME CANADA Notes to Financial Statements (continued)Year ended March 31, 2019 (in thousands of dollars) 11. Contingencies: Inthenormalcourseofbusiness,theCorporationhasenteredintoaleaseagreementfor premises. It is common in such commercial lease transactions for the Corporation as the lessee to agree to indemnify the lessor for liabilities that may arise from the use of the leased assets. The maximum amount potentially payable under the foregoing indemnities cannot be reasonably estimated. The Corporation has liability insurance that relates to the indemnifications described above.12. Financial risk management:The Corporation is subject to the following risks due to its financial instruments:(a)Foreign currency risk:Foreigncurrencyriskistheriskthatthefairvalueorfuturecashflowsofafinancial instrumentwillfluctuatebecauseofchangesinforeignexchangerates.TheCorporation holds $13 in foreign currency.(b)Liquidity risk:Liquidity risk is the risk that the Corporation will be unable to fulfill its obligations associated with financial liabilities or to meet cash requirements on a timely basis or a reasonable cost. TheCorporationmanagesitsliquidityriskbymonitoringitsoperatingrequirements.The Corporation prepares budgets and cash forecasts to ensure it has sufficient funds to fulfill its obligations. (c)Credit risk:Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss. The Corporation is exposed to credit risks with respect to its interest-bearing investments. The Corporation invests in government bonds to reduce the credit risk to an acceptable level. (d)Interest rate risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates. The Corporation is exposed to interest rate risk with respect to its interest-bearing investments as disclosed in note 3 to the financial statements.13 13'