The Plan's proactive risk management
allows it to fulfill its commitments. It's
constantly evolving, positioning us as
a leader in industry best practices.
The Plan's risk management activities involve
modelling, projections and simulations that
are continually updated and used as a basis
for risk-taking decisions. Integrated, dynamic
management of all of the Plan's risks is a strategic
driver of performance. Risk management is central
to building the overall portfolio and informs all
investment decisions.
We take sufficient risks to ensure adequate longterm returns, while implementing strategies to
stabilize and maintain the sound financial health
of the Plan under a range of possible scenarios.
Since the Plan has repercussions on the
organization, we ensure that we comply with
Desjardins's policies and limits in terms of risk
taking, specifically the risk budget. This is one
of the most important variables underlying
our strategy.
Main risks
Interest rate risk
Changes in interest rates have a direct and substantial effect on the Plan’s financial health.
Market risk
Market volatility could lead to negative returns, which would impact the contributions needed to properly fund the Plan.
Longevity risk
Plan members living longer than expected or updates to mortality tables could drive costs up.
Liquidity risk
The Plan must have enough money available to fulfill its financial obligations at all times.
Risk mitigation measures
An exhaustive risk register
The main purpose of the risk register is to identify
risks to the Plan's administration and financial
management. Each risk is assessed and tracked
using indicators with set targets and ranges.
The tracking process helps make sure we meet
objectives by identifying the causes when risk
levels are exceeded and correcting the strategy
if needed.
A resilient asset allocation strategy
Asset allocation is dynamically adjusted based on
risk coverage. This aims to ensure cost-effective
funding and to maximize the Plan's resiliency to
as many economic scenarios as possible.
A targeted investment approach
The investment plan identifies how major asset
classes function in the portfolio and which features
are targeted during investment selection. Our
rigorous investment process ensures consistent
investment decisions and objectives. More
specifically, investments are monitored to ensure
that their performance and contribution that their
performance and contribution remain with the
needs of the global portfolio.
A customized mortality table
The investment plan identifies how major asset
classes function in the portfolio and which features
are targeted during investment selection. Our
rigorous investment process ensures consistent
investment decisions and objectives. More
specifically, investments are monitored to ensure
that their performance and contribution that their
performance and contribution remain with the
needs of the global portfolio.