The general approach to the Authority’s risk management framework.
Risk management is at the core of our institution, and the Risk Department was created at the same time the QIA was established.
We manage our portfolio within the levels of risk defined by the Supreme Council for Economic Affairs and Investments and QIA's Board of Directors.
QIA has implemented a comprehensive risk management framework that adheres to international best practices. Our approach to managing risks also takes into account the Generally Accepted Principles and Practices for Sovereign Wealth Funds (the 'Santiago Principles') issued by the International Working Group for Sovereign Wealth Funds.
The overall investment objectives and risk tolerances for the investment portfolio managed by QIA are as defined by QIA's Board of Directors under the supervision of the SCEAI. Specifically our Board has defined investment return objectives in addition to a risk appetite statement that sets out both the types and level of risk that the Board is willing to accept in pursuit of these return objectives. QIA manage the investments in the portfolio within the risk limits that are consistent with the overall risk appetite set out by the Board. The Risk Management, Legal department reviews progress and compliance with the Santiago principles on an annual basis.
The risks to which QIA is exposed can be categorized as Investment (Market, Credit and Liquidity risks) and Operational risks. Our Risk Management Framework provides a structure for the identification and management and reporting of these risks.