Rocky Ieraci, Managing Director, Head of Investment Risk and Steven Richards, Managing Director, Head of Enterprise Risk represented CPP Investments at a recent FCLTGlobal Forum: Risk – A Balancing Act. FCLTGlobal is a not-for-profit organization that works to encourage a longer-term focus in business and investment decision-making by developing practical tools and approaches to support long-term behaviors across the investment value chain.
Steve and Rocky shared insights on how CPP Investments focuses on the long-term through our investment risk process, the importance of long-term dialogue between trustee directors and risk professionals and how FCLTGlobal’s research helps assist our long-term goals with regards to investment risk. They emphasized the need to find the right balance between short-term risks (such as equity volatility) and longer-term considerations (such as climate change) to ensure the longer-term sustainability of the Canada Pension Plan. They also noted that having a board like ours that is actively engaged in a two-way dialogue with management on long-term risks is important.
Participants included members and guests of FCLTGlobal who engaged in a peer-to-peer exchange of practical examples on multi-horizon risk management to support long-term value creation. The forum included six sessions including ones on risk oversight by trustee boards, risk provisions in owner-manager mandate agreements, climate change and carbon risk and reputational risk.
Download the video transcript here.