Balancing these concentrated risks against the overall long-term potential return of our investments is integral to our business. This need will become more acute as the global economy undergoes major shifts over the next decade.

We continue to refine and enhance our risk management framework as we build up capabilities to invest in different markets and different products and asset classes. In particular, we have added rigour and timeliness in our Risk Management Information System to improve our decision-making and responsiveness in a volatile market with significant stagflation risks in the coming years.

Risk Management Framework

Our Board and CEO are ultimately responsible for the oversight and management of strategic, financial and operational risks. In day-to-day operations, they are supported by the senior management team and Risk Management Unit (RMU) which provides on-the-ground vigilance and responsiveness. Together, they determine the objectives and policies of our risk management framework, and promote a culture of risk awareness and a sense of balance in risk taking.

This culture of balanced risk-taking is reinforced through a risk-sharing compensation framework, where Temasek staff share the upside and downside over the medium and long term.