Governance and Risk Management
The funds managed by GIC are owned by the Singapore Government. Its investment returns supplement the country’s annual budget in areas such as education, R&D, health care and physical environment.
As a Fifth Schedule company under the Singapore Constitution, GIC is accountable in various key areas to the President of Singapore who is empowered under the constitution to obtain information to enable him to safeguard the country's reserves. The Auditor-General, who is appointed by the President of Singapore, submits an annual report to the President and Parliament on his audit of the Government and other bodies managing public funds.
GIC manages risk by investing in a well-diversified portfolio, with a balanced distribution of asset classes and their underlying business sectors and geographies. This, too, is why GIC's performance has to be measured on the basis of its overall portfolio rather than by how much it makes or loses on individual investments. Its approach to “risk management” has three distinct components: portfolio risk; process risk and people risk.
As a member of the International Working Group of SWFs that developed the Santiago Principles in October 2008, GIC publishes how it adopts and implements the voluntary set of principles and practices.
Read more about this topic: Government Of Singapore Investment Corporation
Famous quotes containing the words governance, risk and/or management:
“He yaf me al the bridel in myn hand,
To han the governance of hous and land,
And of his tonge and his hand also;”
—Geoffrey Chaucer (1340?–1400)
“Man is so muddled, so dependent on the things immediately before his eyes, that every day even the most submissive believer can be seen to risk the torments of the afterlife for the smallest pleasure.”
—Joseph De Maistre (1753–1821)
“No officer should be required or permitted to take part in the management of political organizations, caucuses, conventions, or election campaigns. Their right to vote and to express their views on public questions, either orally or through the press, is not denied, provided it does not interfere with the discharge of their official duties. No assessment for political purposes on officers or subordinates should be allowed.”
—Rutherford Birchard Hayes (1822–1893)