Risk Management

Identifying, measuring and managing all aspects of risks to which the Fund is exposed is the primary responsibility of our Risk Management and Compliance department, along with implementing key compliance measures such as adequate monitoring and control processes covering the Fund’s investments.

Risk Management Approach

The Risk and Compliance Group is comprised of two teams: the Risk team and the Compliance team.

The Risk Management function within the Risk and Compliance Group independently monitors and oversees the implementation of OIM’s risk management policies and practices in order to ensure the consistent performance of the Fund over time. A key part of Risk Management is running frequent analyses and reporting them back on a regular basis to the Risk Committee, as well as various other internal committees, and supporting the investment process. All periodical (quarterly and annual) official risk reporting uses information provided by the independent Master Record Keeper.

The team has overall responsibility for measuring, monitoring and reporting on risks across asset classes. Risk budgeting approach is used to measure and identify the significant risk contributors (risk components) and to support optimal allocation of risk based on risk adjusted returns. In this process absolute and relative performance of the Fund and asset classes is analyzed and monitored regularly.

The comprehensive risk limit structure ensures that the risk taking process is continuously kept under control. It enables to apply preventive measures to avoid potential future losses by providing a solid base for proactive risk management. The team is responsible for OIM’s risk models and tools, and day-to-day monitoring of market, liquidity and operational risks, as well as regular monitoring of credit risk at the portfolio level.


Monitoring and ensuring compliance with existing policies and guidelines is an integral part of the activities of the Office of Investment Management (OIM). OIM has a comprehensive governance framework committed to the transparency of its activities, and emphasizing standards of honesty, integrity and professionalism in which management leads by example.

As part of the Risk and Compliance Group, the Compliance function of OIM is focused on identifying, assessing, monitoring and reporting on compliance risks in matters relating to OIM’s investment activities, and the personal conduct of staff members. The Compliance team also ensures that our staff adhere to high standards of conduct which include the United Nations “Staff Regulations” and related staff rules, as well as the “Code of Ethics and Standards of Professional Conduct” promoted by the Chartered Financial Analyst Institute (Annex C), regarded as best practice in the investment industry, in addition to other policies and guidelines.

The Deputy Director for Risk and Compliance reports to the Director, OIM. The Deputy Director assists the Representative of the Secretary-General and the Director, OIM in the development and implementation of the Fund’s policies on investment risk control, compliance, performance and reporting matters.

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