Risk Management

Independently identifying, measuring, monitoring and managing all aspects of risks to which the Fund is exposed is the primary responsibility of our Risk and Compliance Group, 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 three teams: the Risk team, the Performance 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. A key part of Risk Management is ongoing risk assessments, risk monitoring  and regular reporting to appropriate risk governance structures of the Fund including the Risk Committee.

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.

A full ALM study is performed by the UNJSPF every four years unless the Pension Board (UNJSPB) considers it necessary to conduct an ALM study more frequently. The purpose of the ALM study is to examine the financial condition of the Fund, estimate the feasibility of achieving the desired long-term investment return targets, set an appropriate Long-Term Investment Objective consistent with maintaining the Fund's long-term financial sustainability and propose a reasonable, feasible, and implementable Strategic Asset Allocation consistent with the Long-Term Investment Objective, the Fund's Risk Appetite and its current financial condition. The risk team plays an integral part of the ALM study.

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, and the enterprise-wide risk management.


The Performance team is responsible for independently measuring and reporting the Fund’s investment performance. The team tracks the investment performance on a regular basis and provides the official performance records quarterly to the internal and external stakeholders.

The Fund’s investment performance is independently measured and reported by the Fund’s third-party Master Record Keeper. The Master Record Keeper, as an asset service provider, calculates investment performance returns that are compliant with industry standards, such as CFA Institute’s Global Investment Performance Standards (GIPS). The Fund earned the GIPS compliance certification in 2020.

The Fund's annual performance is audited and reported periodically. An external GIPS compliance verification audit is also made.


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

LinkedIn Twitter