Page 117 - KWAP_AR2022

FoR betteR GoveRnAnce Annual Report 2022 115

The Risk Appetite Statement (RAS) defines KWAP’s overarching attitude toward investment and non-investment
activities, thereby guiding KWAP’s strategy and decision-making process. RAS also sets out KWAP’s capability and
capacity to take risk in the context of investment objectives and risk tolerance by addressing the following:

i. The long-term goal of the fund, which is to help iv. Requirement of periodic reporting to the Board
meet the government’s pension liabilities; and Investment Panel;

ii. The Board’s and Investment Panel’s oversights v. Key criteria for investment activities such as
and responsibilities over the risk that the fund safety, liquidity and reasonable risk adjusted
takes; return over a long-term horizon; and
iii. The need to balance between return expectation vi. The need for KWAP to continuously enhance
and risk appetite; internal capacity and capability to manage risks.

RAS Policy is complemented by a robust governance structure with independent lines of reporting between risk-taking
units and “control” units. It is further enhanced by a series of frameworks, policies, guidelines and standard operating
procedures, namely:

Enterprise Risk Risk Management Risk Management Departmental
i Management ii Policies; iii Guidelines; and iv Standard Operating
Framework; Procedures.

We invest in our people, develop clear policies, and ensure robust and risk-aware operational processes (with significant
investment in systems to ensure adequate control and automation). Robust governance is put in place to ensure segregation
of reporting lines between departments in KWAP to prevent conflicts of interest and ensure independence and integrity of
the different functions.

The reporting line is depicted by the Organisation Chart on page 20.
ACTIVITIES IN 2022

Continuous Risk Management Awareness and Practices Talks in KWAP

• Enhancing risk awareness and updating the organisation and employees on developments and best practices
across all aspects has been a constant in KWAP.
• KWAP had initiated and completed various activities aimed at promoting risk management awareness and
practices within the organisation.