IPF årsrapport 2018 (eng) - Flipbook - Side 48
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46
Notes (cont.)
Note
25
Risk management
Through its policies and guidelines, the Board of
Directors of Industriens Pension determines the
overall level of the company’s risk taking and the
framework for ongoing risk management.
The majority of members of Industriens Pension have
a market-interest-rate product, where each member
carries the main part of the risks. For these members,
a key element of the risk assessment is to ensure
that the individual member is not subject to an
inappropriate risk.
The day-to-day management monitors risks on an
ongoing basis, and ensures compliance with the
frameworks stipulated. The Board of Directors
Every year, the Board of Directors approves an
receives regular reports on compliance with individual overall risk assessment, which is subsequently
frameworks.
submitted to the Danish Financial Supervisory
Authority and communicated to all relevant
Industriens Pension's view on risk
employees at Industriens Pension.
Industriens Pension's view on risk is to acknowledge
that results desired are generated through controlled Risk management in practice
risk tolerance and that risk should therefore be
In accordance with the Executive Order on
managed and controlled; and not necessarily
Management and Control of Banks etc., separate
eliminated.
actuary, compliance and risk-management functions
have been set up, as well as an internal audit
All potential risks are monitored on an ongoing basis, function. Furthermore a person has been appointed
and if the risk exceeds the acceptable level, initiatives to be responsible for each function. In addition to
are implemented to mitigate the risk to a lower,
these functions, Industriens Pension has also
acceptable level. Such initiatives are implemented in appointed a data protection officer and two persons
policies, guidelines and internal business procedures, responsible for the money laundering area; one for
and by establishing or adjusting internal controls.
the member and business area, and one for the
investment area.
Industriens Pension aims at promoting risk awareness
among its employees and the overall view on risk is
The risk management function plans work on risk and
therefore integrated in the day-to-day management of regularly prepares reports on the risk area. It is
the company’s risk activities.
crucial for Industriens Pension that the practical work
on implementing management of the individual risks
Risk identification and assessment
is rooted with the staff responsible in the individual
The most important element of Industriens
departments. The individual heads of department are
Pension's risk management is to ensure that all
therefore responsible for identifying new risks and
significant risks from the current business model
ensuring that these are also mitigated with suitable
and activities are identified, quantified, assessed,
controls. Errors and other inappropriate incidents are
managed and reported.
identified and assessed. These assessments are
incorporated in work on risk and to organise controls.
The assessment of individual risks takes into
The risk management function regularly follows up on
account members' circumstances, as well as the
risks identified, controls implemented and error
size of the own funds to cover current solvency
incidents observed.
capital requirements.
Most significant risks for Industriens Pension
Current risks can be divided into market risk,
business risk, as well as operational and strategic
risk.