RISK MANAGEMENT


In keeping with our prudent culture, identifying and managing risk plays a central role in every stage of GEMS-Prime Capital Investments's strategic and day-to-day decision-making.

GEMS-Prime Capital Investments's risk management framework is holistic in nature, having been designed to comprehensively identify and analyse all types of risks across asset classes and ensure that any potential issues are managed efficiently and effectively.

The Managing Director has ultimate responsibility for GEMS-Prime Capital Investments's risk management, with assistance and advice from several committees and departments, including the Investment Services Department, Strategy Unit, Evaluation and Follow-Up Division, Internal Audit Department, and Legal Division.

Governance

The Risk Management Committee (RMC) is the primary committee that is responsible for dealing with risk management at GEMS-Prime Capital Investments's. The RMC, which has the same composition as the Investment Committee, is tasked with overseeing the effective implementation of GEMS-Prime Capital Investments's risk management framework and ensuring that all risks are addressed by relevant departments in a timely manner. Its objective is to ensure that a proactive dialogue exists between all senior risk executives in order to help protect GEMS-Prime Capital Investments's from unexpected loss of capital or calls for liquidity, failure of key operational processes, or reputational damage. Other key objectives of the RMC include ensuring alignment of departmental risk activities with GEMS-Prime Capital Investments's risk appetite and overall risk framework, and serving as a conduit for the escalation of risk issues arising from within or across departments. The Investment Services Department is at the heart of this process. It identifies risk issues to be escalated to the RMC, sets the agenda, coordinates meetings and monitors the execution of approved risk management actions. Other committees are also involved in risk management matters, as required.

Risk Management

At GEMS-Prime Capital Investments's, we believe that managing risk is a core responsibility of all employees. Risk management is embedded in all of GEMS-Prime Capital Investments's investment and related activities, from asset allocation to investments in individual asset classes and ultimately to trade execution. The Investment Services Department, working closely with investment teams, is responsible for protecting GEMS-Prime Capital Investments's assets and adding value to the investment process through its core risk management responsibilities. These entail leading the disciplined execution of the risk management framework, advising on and monitoring adherence to risk appetite, supporting the RMC with an independent assessment of GEMS-Prime Capital Investments's concentrations, and promoting a culture of risk awareness.

The Investment Services Department’s risk analysis includes:

• Continuously assessing all sources of risk on both an absolute and a relative basis, including through proprietary portfolio modelling;

• Developing a comprehensive risk assessment across all risk types, including “top-down” aggregate portfolio risk, “bottom-up” investment risk by asset class, credit and counterparty risk, operational risk, operational due diligence, business continuity, and compliance risk; and

• Identifying, monitoring, and escalating risk mitigation strategies to address emerging and ongoing risk issues on a timely basis.

In addition, and to ensure connectivity with Investment Services, each investment department has its own departmental-level risk framework.

By cascading down from the GEMS-Prime Capital Investments's-wide framework, these combine a unity of purpose with the necessary flexibility to capture risks that are unique or specific to each asset class. The Virtual Risk team – a network of risk managers within investment departments and other key functions – is an integral part of the link between the GEMS-Prime Capital Investments's-wide and the departmental risk management frameworks.

Risk Culture

GEMS-Prime Capital Investments's risk management framework is underpinned by the emphasis we place on education to support the continuous development of a culture of risk awareness across GEMS-Prime Capital Investments's. In this respect, the Risk Academy — a series of in-house workshops on topical risk issues facilitated by world-renowned experts — is a leading initiative driven by Investment Services and GEMS-Prime Capital Investments's Learning & Development team. It brings the whole of GEMS-Prime Capital Investments's together on a regular basis, with the objective of enhancing risk awareness and risk management knowledge across all departments.

At GEMS-Prime Capital Investments's, we expect our people to demonstrate the highest standards of ethics, integrity and professional competence. GEMS-Prime Capital Investments's employees must adhere to a Code of Conduct that sets the standards of behaviour that are expected of them in order to preserve GEMS-Prime Capital Investments's integrity and reputation and enable it to fulfil its mission.

$3.7 Billion - Total value of GEMS-Prime Capital Investments's global assets