RISK MANAGEMENT IN INVESTMENT OPERATIONS
Pension insurance companies must maintain their ability to pay current and future pensions under their responsibility, which is why investment operations must be profitable and sustainable. Profitable investment operations necessitate exposure to investment risks, which are limited to safeguard the solvency requirements.
Market risks arising from fluctuations in economic cycles in the financial market are managed both through solvency capital regulations and by ensuring that the investment portfolio is sufficiently diversified. As of the start of 2007, pension institutions bear part of the market risks jointly.
In the table below, Ilmarinen’s asset allocation and return on 31 December 2019 are presented as agreed between the employment pension insurance companies.
The key areas of the company’s risk management are systematically linked to the company’s basic mission as well as strategic and operative targets. The risk management system is documented in the risk management plan that encompasses all of the company’s operations and which is annually reviewed and approved by the Board of Directors.
Read more about risk management at Ilmarinen.