The risk exposure of the GIC Portfolio and the Reference Portfolio may differ occasionally. We are able to lower our risk exposure when markets are exuberant, or increase our risk exposure when opportunities arise, as part of our disciplined, long-term approach.

Risk Management Objectives

Our investment approach is focused on generating good long-term returns by constructing a portfolio that is resilient to macroeconomic and market pressures, while also being aligned with the Client’s risk tolerance.

To protect the Client’s interests and avoid permanent impairment to the portfolio, GIC’s risk management objectives aim to:

1. Ensure that risk-taking activities are in line with the Client’s mandate, long-term return objective, and risk tolerance;
2. Ensure that the risks associated with each investment are duly evaluated and understood;
3. Establish appropriate policies, guidelines, and control processes to reduce the likelihood of significant losses to assets under management; and
4. Take the necessary precautions to manage any reputational impact to the Client and GIC.

Three Lines of Defence

Our risk management model operates along ‘Three Lines of Defence’ ensuring that risk ownership and accountability across the organisation is transparent and clearly articulated.

Our Approach

Our multi-pronged approach to risk management ensures that risks within the portfolio are looked at in a comprehensive manner.  

• Managing Portfolio Investment Risk
• Managing Legal, Regulatory, and Compliance Risks
• Managing Operational Risk
• Managing Cybersecurity, Technology, and Information Risk
• Managing Counterparty Credit Risk
• Managing Business Disruption Risk
• Managing Reputational Risk
• Managing People Risk