Measured risk-taking is integral to Temasek’s business as an investor.

Our Board determines the objectives and overall direction for our risk management framework and functions. Under its guidance, our CEO and senior management team promote a culture of risk awareness and balanced risk-taking.

This culture is reinforced through a risk-sharing compensation philosophy which puts the institution above the individual, emphasises long term over short term, and fosters the spirit of co-ownership by aligning employee and shareholder interests.

Enterprise risks are factored into day-to-day decision making under the supervision of our CEO and senior management team.

We use simulation techniques to help evaluate new investments as well as review our portfolio.

We continue to fine-tune our Credit Risk Management framework to increase our responsiveness in addressing continued uncertainties in the credit markets. In addition, we have been enhancing the processes and systems driving our derivatives control framework.