Strategic Risk Management for pension funds and sovereign wealthfunds

In the current challenging environment it is more than ever important for the CRO and (investment) board to have an appropriate strategic risk framework which facilitates consistent evaluation and monitoring of strategic risks and objectives.

To what degree are your long-term and short-term strategic objectives still feasible? Are risks still within the risk budget? What is the impact of market developments on your (dynamic) investment policy? As an independent specialist, Ortec Finance offers the Risk Navigator service to Pension Funds, Insurance Companies and Sovereign Wealth Funds. The Risk Navigator, our risk management software, provides institutional investors with an up-to-date overview of the financial risks from a holistic balance sheet perspective, including guidance on how and when to manage these risks. The Risk Navigator has a modular set-up to fit the specific needs of any investor.

The Risk Navigator service provides a clear signal function, including guidance on how to manage risks.

Pension Funds, Insurance Companies and Sovereign Wealth Funds face many complexities when it comes to making decisions about their investment portfolios. Some tend to focus on the micro-level, whereas macro-level decisions usually have a greater impact on risk and return. Changes in your financial position or market circumstances demand regular evaluation of your strategic risks and return objectives. To what degree are your long-term and short-term strategic objectives still feasible? Are risks still within the risk budget? How have market circumstances developed over time, what does this mean for the risk and return outlook in the short and medium term, and how should this be translated in terms of your (dynamic) investment policy?

Seamless fit with Strategic Risk Management

The Ortec Finance Risk Navigator service provides insight into these relevant questions and fits seamlessly into the overall Strategic Risk Management process of pension funds and sovereign wealthfunds. It covers the feedback loop of evaluation of the specific objectives and risk appetite as formulated in the ALM phase. To this purpose, Ortec Finance uses a consistent ALM simulation model (GLASS), which replicates integrated long-term and short-term risks and returns. The Risk Navigator service can be set up within your own organization and is accessible to you at a moment’s notice.

More about GLASS platform

Strategic Risk Management for pension funds and sovereign wealthfunds

• Strategic risk management process based on consistent short-term and long-term assessment of risk and return
• Keep track of strategic objectives and risks, including communication with stakeholders
• Signal function from a holistic balance sheet perspective

• Periodic guidance on how and when to manage risks 

Key features

• Ensure all stakeholders receive appropriate reporting
• Visually display the key risk analysis tailored to your specific needs
• Simulation of balance sheet with large number of scenarios
• Identify the most important risk drivers
• Improve understanding of balance sheet dynamics
• What-if analysis to assess impact of policy alternatives