NTUC Income AR 2019

CORPORATE GOVERNANCE • Ensure resources dedicated to investment activities are sufficient to implement and manage the approved Investment Policy and any other activities requested by the Board • Determine the Key Performance Indicators (KPIs) for investment management and assess performance against the KPIs • Implement andmaintain adequate risk management systems and controls in respect of the Co-operative’s investment portfolios • Oversee all sub-funds of the Investment-Linked Fund and reviewing their performance on a regular basis • Approve the limits and guidelines outlined in the Investment Policy, which have been delegated by the Board to the IC, subject to Income’s overall risk limits set by the Risk Management Committee (RMC) • Approve margin transactions and short positions as outlined in the Investment Policy The IC is authorised to make all investment decisions as delegated by the Board. Property investments exceeding S$250 million in a single transaction would require the approval of the Board. The IC will report to the Board any transaction of material consequence. The IC has the discretion to refer to the Board for approval for transactions which may have wider implications beyond pure investment considerations. The IC held four regular meetings during the year. It evaluated and approved a number of major investment activities, including the review of the asset allocation framework, foreign exchange framework and the investment portfolios outsourced to external fund managers. It also oversaw the successful completion of the appointment of Mercatus Strategic Investment Management, a subsidiary of NTUC Enterprise Co-operative Limited, tomanage the Co-operative’s real estate portfolio. Risk Management Committee The Risk Management Committee (RMC) comprises five members as follows: Chairperson Pang Wai Yin Members Richard Shermon Choong Tuck Oon Joy Tan Sim Hwee Cher The Board delegates its oversight function to the RMC while retaining the ultimate authority and responsibility. The RMC oversees the risk management framework and policies, covering all material risks that include market, credit, insurance, operational, liquidity and reputational risks. The key duties and responsibilities of the RMC are to: • Approve, or endorse for Board’s approval, the strategy, framework and policies for risk management and capital management • Set enterprise level risk appetite and tolerance limits • Oversee the operation of an independent enterprise-wide risk management system • Ensuremanagement has established adequate systems and processes for the identification, measurement, management, monitoring and reporting of risks • Highlight to the Board issues of concern on key risks The Chief Risk Officer has a direct reporting relationship to the RMC. 24 HERE FOR SURE