Ensure a balance in managing the risk-return relationship, procure sophisticated risk management tools, provide risk management support to managers and promote a risk culture.
The Risk group is organized into four pillars
High governance standards
Risk management governance ensures transparency in CDPQ’s investment activities and sound management of our clients’ assets. This governance entails several components:
Based on its mandate, which is approved by the appropriate body, each of the different committees plays a key role in managing investment and operational risks. Committees receive a rendering of accounts regarding various subjects and are solicited for their opinions. In addition, these committees recommend or approve investments, strategies, processes, policies or directives.
These committees are supported by various parties, who provide analyses and progress reports, to ensure an efficient and consistent integrated risk management process.
The Integrated Risk Management Policy (IRMP) applies to all of our activities and addresses all financial, business and operational risks.
The IRMP recommends risk limits and authorization levels for CDPQ overall and limits applicable to the cross-sector activities.
Financial risks are monitored in CDPQ’s total portfolio and in each of the specialized portfolios.
The investment policy of each specialized portfolio includes its management philosophy, eligible securities, performance targets, the benchmark and risk limits.
Business and operational risk oversight is carried out across CDPQ as well as by each of the business units. A strategic plan and policies and directives are adopted accordingly to address all of these risks.
Strategic investment planning (SIP)
The annual SIP process requires each investment group to adopt a four-year investment strategy that is in-line with CDPQ’s directions and expectations. Although execution of the strategies is decentralized, SIP ensures that our vision is centralized and that our portfolios are aligned. It therefore reinforces the decision-making process by targeting the best risk-return ratio in the choice of investments.