To foster a sound risk controlled environment in MAS, a Risk Committee was set up in 2000 to assist the Board of Directors in the management of financial risks inherent in MAS' investment portfolios. The Committee is chaired by an independent Board member, Mr Lam Chuan Leong, Permanent Secretary (Ministry of the Environment). The Risk Committee is responsible for strategic risk management issues as well as ensuring that appropriate risk methodologies and effective risk measurement systems are established. In addition, the Committee reviews and recommends portfolio benchmarks based on MAS' defined risk tolerance for approval by the MAS' Board.
The Risk Committee is supported by the Financial Risk Management Division (FRM) which provides regular reports of the risk profiles of MAS' investments. These report cover risk measurement and analysis of the various MAS' portfolios. FRM also formulates risk policies and controls, and performs independent compliance monitoring of the portfolios in accordance with stipulated investment guidelines.