Risk & Performance Management

"The ultimate risk management imperative for GIC is to protect the company and its clients' assets against catastrophic losses. To that end, it is essential that we have a strong governance framework run by people with high integrity and good common sense. Beyond that, the practice of risk management amidst the complex global investment environment that GIC operates in is as much about having good risk control as maintaining high efficiency in risk-taking. The Risk & Performance Management Department plays a pivotal role in helping GIC maintain a healthy balance between the two."
- Dr Sung Cheng Chih, Chief Risk Officer

The mission of the Risk & Performance Management Department (RPMD) is twofold: to oversee risk control in the GIC and to raise the efficiency of risk-taking in the company's portfolio.

Overseeing risk control is the joint responsibility of the Investment Monitoring and Operational & Credit Risk divisions. The former is responsible for monitoring the market and liquidity risk profiles of GIC's portfolio through regular compliance checks and surveillance activities. The latter seeks to control and mitigate where possible the operational and counterparty credit risk assumed by the company in its everyday dealings as such risks are largely uncompensated.

Risk efficiency, on the other hand, is focused on maximizing the return on the portfolio relative to the level of market risk we are prepared to assume. Accordingly, the Enterprise Risk Analysis, Global Markets Risk Analysis and Equities Risk Analysis divisions are tasked to provide a host of analytical and advisory services to the investment departments in their pursuit of higher risk-adjusted returns. Among these is the critical function of allocating risk capital across the various investment strategies and the concomitant determination of performance targets. Through the development of portfolio management, risk analysis and performance attribution tools, these teams also help to provide critical feedback to GIC's investment processes.