At PSP Investments, we acknowledge that in order to achieve our mandate, we must take risks and manage them appropriately. For this reason, we promote a risk-aware culture and have established an integrated approach to managing a full spectrum of risks.
Our enterprise risk management framework involves all employees and provides a structure for identifying, evaluating, monitoring, managing and reporting our various financial and non-financial risks. The enterprise risk management framework is also a core component of our Enterprise Risk Management Policy. The policy defines PSP Investments’ responsibilities relating to risks from the perspective of the Board and its committees, the management committees, and the investment groups and support groups within our organization. In addition to the Enterprise Risk Management Policy, an Investment Risk Management Policy and an Operational Risk Management Policy deal with the specific characteristics of these risks.
Enterprise Risk Classes:
Enterprise risks are categorized to facilitate a universal understanding of all the risks faced by PSP Investments.
PSP Investments' enterprise risk classes are illustrated below:
