The Group’s risk management strategy involves the use of non-derivative financial instruments related to cash flow hedges for future exports and hedges of a net investment in a foreign operation in order to minimize exposure to currency rate risk, which is detailed below. The following is the effect of a change of 1% and 5% in the exchange rate of the Colombian peso as compared with the U.S. dollar, on the balance of financial assets and liabilities denominated in foreign currency as of December 31, 2017:
| Scenario / Variation in
the exchange rate | | Effect on income
before taxes (+/-) | | Effect on other
comprehensive income (+/-) | |
| | 1 | % | | 2,715 | | | 305,293 | |
| | 5 | % | | 13,577 | | | 1,526,465 | |
