Our approach, that is based on the COSO framework, commences with determining the business objectives and the Fund’s risk appetite, identification of events that may hinder the Fund from achieving its objectives, evaluation of the magnitude and likelihood of crystallization of risk events, considering the extent to which we already have controls in place to mitigate or capitalise on these risks, deciding how to respond to the residual risks, i.e. avoiding, reducing, sharing or simply accepting them and putting in place mechanisms to address them.

The approach is applied in strategy setting and across the Fund, and is designed to identify potential hazards and threats that may affect the Fund. It provides a framework to manage risk according to the Fund’s risk appetite and offers reasonable assurance regarding the achievement of the Fund’s objectives. It looks well beyond the set of traditionally insurable risks, seeking to address all of the Fund’s risks within an organised and coherent framework.