Reliable information is the basis for sound investment policy. Each year APG sends out 15,000 different reports with background information, figures and analyses. State-of-the-art computer systems process 800,000 financial transactions executed in the financial markets worldwide. Each day we determine the value of around 35,000 investments in clear reports. In this way we always have a grip on what is happening in our investment portfolios.
Financial risk management
APG’s financial risk management has three levels, which operate independently of each other.
The first level is formed by the managers and staff members of the administration and investment departments. They assess whether policy and the associated risks fall within the set mandate.
The second level consists of the risk managers of Investment Control. They determine and refine the limits of an investment mandate and monitor these constantly. Their recommendations are reviewed by the Financial Risk Committee, the body responsible for financial risk management within APG.
And finally, the accountants at the Corporate Audit Department form the third level. They conduct regular audits and report their findings directly to the Board of Directors of APG Asset Management. This approach ensures the implementation of the investment mandates.
Operational risk management
In addition to financial risks, we also identify operational risks. By these we mean failing business processes, inappropriate human conduct, system errors and external factors. These operational risks are also identified and remedied at independent levels.
Operational risk management is conducted on two levels. The first level consists of the managers and staff members themselves, by having them work with clearly defined responsibilities and detailed job descriptions. Operational Risk Control records and evaluates risks, and reports them to the Board or, if necessary, to APG’s Operational Risk Committee. Secondly, our auditors assess the structure and operation of the internal control processes. This approach is SAS70-certified.
