In Conversation with Rocky Ieraci and Steven Richards at FCLTGlobal’s Forum on Risk
Rocky Ieraci, Managing Director, Head of Investment Risk and Steven Richards, Managing Director, Head of Enterprise Risk represented CPPIB 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 CPPIB 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.