Risk management in the NSIA is primarily guided and monitored by the Board Risk Committee. The Chief Risk Officer regularly advises the Board Risk Committee about relevant risk metrics and material exposures. The Risk Committee in turn advises the Investment Committee and the Board as appropriate. The Risk Committee's responsibilities include:
- Oversight of the NSIA's risk management systems, practices and procedures to ensure effective risk identification, management and compliance with internal guidelines and external requirements
- Assistance to the NSIA's management to determine the key risks to the NSIA's activities and to prioritize work to manage those risks and monitor accordingly
- Review of reports from the NSIA's senior staff on the efficiency and effectiveness of risk management and associated internal compliance and control procedures
- Provide advice and counsel to the Chief Investment Officer (CIO) and Chief Risk Officer (CRO)
- Accept recommendations from the CRO before passing them to the Board of Directors for ratification
- Provide input to the Board's Investment, Audit and Compensation Committees as appropriate
- Receipt of reports from the NSIA's senior staff concerning the risk implications of new and emerging risks, legislative or regulatory initiatives and organizational changes
- With specific regard to the NSIA's investment portfolios, consider various measures of risk including, interalia, volatility, liquidity and currency risk.
Details regarding the composition and other roles of the Risk Committee are contained in the Committee's Charters.