Risk appetite governance requires pension funds to convert Board-approved tolerance into measurable portfolio-wide limits for each component. Pension Fund Boards must maintain and periodically review a documented risk appetite statement defining the overall risk accepted in Scheme management. ... Summary
Risk appetite governance requires pension funds to convert Board-approved tolerance into measurable portfolio-wide limits for each component.
Pension Fund Boards must maintain and periodically review a documented risk appetite statement defining the overall risk accepted in Scheme management. The statement must be operationalised through specific, measurable and actionable quantitative and qualitative risk limits for the whole portfolio and its individual components.
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