Risks and return in balance

Risk management

Risks kept in check based on a strict and a sophisticated risk management policy

No return without risk. That is why investing by nature involves taking risks in a responsible and controlled way. APG Asset Management implements a strict and sophisticated risk management policy in order to keep the risks in check.

Saving on its own is not enough to provide a quality, affordable pension. We also need to make investments, as it has a higher return than saving. Based on savings only, the pension contributions would be higher and the pension payments lower.

Investing also means taking risks. We make a maximum effort to optimize the risk-return ratio for you. This is done by recognizing and managing any risks in all stages of the investment process and APG Asset Management’s operations.

Risk management has three levels (lines of defense).

First risk management level

At the first level, the managers and employees of the administrative, supporting and investment departments assess if their daily work and the associated risks are within the limits of the imposed policy framework and procedures. Also, the managers annually substantiate the so-called internal in-control statement. This also serves as a basis for the mandatory management statement in APG Asset Management’s ISAE 3402 report.

Second risk management level

At the second level, the risk management departments advise and supervise APG Asset Management’s employees’ compliance with risk limits and risk policy. The risk management departments report their findings and recommendations to:

  • The Asset Management Risk Committee, which is responsible for the overall supervision of the risk profile of the organization and our services delivered to pension funds. APG Asset Management’s strategic and reputation risk are key areas of focus. The supervision of financial and non-financial risks is delegated to subcommittees, where the Asset Management Risk Committee monitors the coherence between the two.
  • The Financial Risk Committee, which is responsible for financial risk management of the investments APG Asset Management manages. The committee is responsible to the Asset Management Risk Committee.
  • The Non-Financial Risk Committee, which is responsible for non-financial risk areas, such as operational risk and compliance with legislation and regulation. This includes, among others, supervising the procedures that detect and prevent errors in processes.The committee is responsible to the Asset Management Risk Committee.
  • The Valuation Committee, responsible for the valuation of the investments APG Asset Management manages. The committee is responsible to the Asset Management Risk Committee.

Third risk management level

At the third level, the auditors of the Audit Department of APG Group frequently perform audits at APG Asset Management. They report their findings directly to the Directors of APG Asset Management.


This three-level-approach promotes controlled execution of the pension fund clients’ investment mandates and APG Asset Management’s operations.

Additionally, external auditors at least annually assess the structure and performance of APG Asset Management’s processes in the context of the annual financial statements audit. They also assess specific APG Asset Management reports to customers or their auditors, such as ISAE 3402. 


Read articles on risk management below:

From asset allocation to risk allocation

After the fall of Lehman in 2008, a scenario unfolded for many pension funds which was only taken account of in the tail scenario or not at all. During the crisis, pension funds faced various problems simultaneously, such as the lack of assumed diversification benefits and unexpectedly high risks. Read more >

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