Risk Management Objectives

GIC’s investment approach focuses 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:

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

Three Lines of Defence

GIC’s risk management model operates along three lines of defence, ensuring that risk ownership and accountability are transparent and clearly articulated. This model underscores our premise that every employee has an individual responsibility to manage risk well. It integrates risk management into our daily operations and overall strategic planning.

Our Approach

Our multi-pronged approach to risk management, complemented by the three lines of defence, ensures that risks within the portfolio are looked at in a comprehensive manner.

• Managing portfolio investment risk
• Managing reputational risk
• Managing legal, regulatory, and compliance risks
• Managing counterparty credit risk
• Managing cybersecurity, technology, and information risk
• Managing business disruption risk
• Managing people risk