The Board has, in particular, considered the impact of heightened market volatility due to macroeconomic factors such as inflation, interest rates and geopolitical concerns. To mitigate this risk the Board considers various portfolio metrics including individual stock performance, the composition and diversification of the portfolio by growth category, purchases and sales of investments, the holding period of each investment, liquidity characteristics and the top and bottom contributors to performance. The Manager provides rationale for stock selection decisions. A strategy meeting is held annually.

The value of the Company's investment portfolio would be affected by any impact, positively or negatively, on sterling but such impact would be partially offset by the effect of exchange movements on the Company's yen denominated borrowings.

How is it managed?

The Board monitors the level of premium/discount at which the shares trade and the Company has authority to issue new shares or buy back its existing shares when deemed by the Board to be in the best interests of the Company and its shareholders.

How is it managed?

To mitigate these risks, the Board regularly reviews and monitors: the Company's objective and investment policy and strategy; the investment portfolio, discussing the investment case and portfolio weightings with the Managers, and its performance; the level of premium/discount to net asset value at which the shares trade; and movements in the share register and raises any matters of concern with the Managers. A spread of risk is achieved by holding a minimum of 40 stocks.

How is it managed?

This is mitigated by the application of the Manager's ESG stewardship and engagement policies, which are integrated into the investment process, as well as the extensive upfront and ongoing due diligence which the Manager undertakes on each investee company. This includes the risk inherent in climate change (see page 36 and 37 of the Annual Report and Financial Statements). The Directors have considered the impact of climate change on the Financial Statements of the Company and this is included in note 1a to the Financial Statements on page 72 of the Annual Report and Financial Statements.

How is it managed?

To mitigate this risk. all borrowings require the prior approval of the Board and leverage levels are discussed by the Board and Managers at every meeting. Covenant levels are monitored regularly. The Company has a maximum equity gearing level of 30% of shareholders' funds. The Company's investments are in listed securities that are readily realisable. Further information on leverage can be found on page 85 of the Annual Report and Financial Statements and in the Glossary of Terms and Alternative Performance Measures on pages 84 and 85 in the Annual Report and Financial Statements.

How is it managed?

To mitigate this risk, the Audit Committee receives six monthly reports from the Depositary confirming safe custody of the Company's assets held by the Custodian. Cash and portfolio holdings are independently reconciled to the Custodian's records by the Managers and the existence of assets by the Managers is subject to annual external audit. Baillie Gifford has a comprehensive business continuity plan which facilitates continued operation of the business in the event of a service disruption or major disaster. The Audit Committee reviews Baillie Gifford's Report on Internal Controls and the reports of the Depositary, Custodian and other key third party service providers are reviewed by Baillie Gifford on behalf of the Board and any concerns investigated. The Depositary, Custodian and third party service providers have not experienced significant operational difficulties affecting their respective services to the Company.

How is it managed?

To mitigate this risk, the Audit Committee reviews reports on Internal Controls published by Baillie Gifford and other third party service providers. Baillie Gifford's Business Risk Department reports to the Audit Committee on the effectiveness of information security controls in place at Baillie Gifford and its business continuity framework. Cyber security due diligence is performed by Baillie Gifford on third party service providers which includes a review of crisis management and business continuity frameworks.

How is it managed?

To mitigate this risk, Baillie Gifford's Business Risk, Internal Audit and Compliance Departments provide regular reports to the Audit Committee on Baillie Gifford's monitoring programmes. Should major regulatory change seem likely to impose disproportionate compliance burdens on the Company, representations are made to the relevant authorities to ensure that the special circumstances of investment trusts are recognised. Shareholder documents and announcements, including the Company's published Interim and Annual Report and Financial Statements, are subject to stringent review processes and procedures are in place to ensure adherence to the Transparency Directive and the Market Abuse Directive with reference to inside information.

How is it managed?

To mitigate this risk developments are closely monitored and considered by the Board and are regularly discussed at Board meetings.