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Enterprise risk management

Norges Bank Investment Management shall apply an effective framework for enterprise risk management where enterprise risk is defined as all risks affecting Norges Bank Investment Management's organisation and business. Enterprise risk management includes the culture, capabilities, and practices, integrated with strategy-setting and its execution, that the organisation relies on to manage risk in creating, preserving, and realising value.

Investment management

The investment strategies for fixed-income and equity investments are grouped into three broad categories, fund allocation, company investments and asset strategies. This policy sets out principles and requirements related to our investment activities.

Management framework and financial reporting

This policy outlines requirements related to Norges Bank Investment Management’s overall framework for how the business is managed, including strategy and action planning, budgeting, cost control and management reporting.

Tax Management

Tax affects the return of the fund and can create risks and exposures for the fund and for Norges Bank. This policy provides principles for managing tax properly and safeguarding Norges Bank and the Government Pension Fund Global against risks associated with tax arising in connection with fund investments.

Information Technology (IT)

Information Technology (IT) is in this policy referred to as data, systems, services and technologies that together provides Norges Bank Investment Management (NBIM) with information, electronic communication and efficient business process execution capabilities.

Security

This policy outlines high-level principles for the security of Norges Bank Investment Management’s assets and personnel. The purpose is to set security objectives appropriate to identified security risks.

Conduct of Business

Norges Bank shall maintain a high level of ethical standards in the conduct of its business, respect human rights, act in a socially responsible manner and comply with current laws and regulations.

Valuation

This policy outlines the principles governing the valuation of the portfolios managed by Norges Bank Investment Management.

External Management

Norges Bank Investment Management's use of external fund managers is based on the rationale that specialist external expertise will contribute to investment return.

Procurement

Procurement undertaken by Norges Bank Investment Management, irrespective of type or value, shall to the greatest extent possible be based on competition. We shall treat all vendors in an objective and non-discriminatory manner, and the procurement processes shall ensure predictability, transparency and accountability.

Human Resources

The long term success of Norges Bank Investment Management depends on its capacity to attract, retain and develop employees to meet the fund's objectives.

Communication

We believe that communication with the fund's owners, the general public and various stakeholders is essential to build confidence in our investment management activities and to ensure broad legitimacy for the management assignment.

Responsible investment management

Norges Bank Investment Management is a large, long-term global investor which through responsible investment works to safeguard the fund’s value and build financial wealth for future generations.

Service Provider Management

Norges Bank Investment Management procures a range of services from service providers as an alternative to retaining internal expertise and capacity to support the delivery of these services. Both initial and ongoing cost benefit analysis and due diligence must support the chosen sourcing strategy.

Unlisted Real Estate Investments

Norges Bank Real Estate Management's (NBREM’s) activities and risks relate to unlisted real estate investments and differs from fixed income instruments and listed securities. This policy outlines the framework and special considerations for investing and managing unlisted real estate investments.

Business Continuity Management

Business Continuity Management shall prepare Norges Bank Investment Management for unexpected events where normal business is interrupted and normal work processes cease to function.

Counterparty Risk Management

Norges Bank Investment Management shall ensure segregation of duties so that the requestor and approver of new counterparties are separated. The use of counterparties shall rest on a legal framework with appropriate agreements.

Whistleblowing

Norges Bank Investment Management (NBIM) prioritises the prevention of misconduct, fraud and corruption and promotes a culture of openness and transparency.

Performance Measurement

Norges Bank Investment Management is committed to measure performance according to industry practice and to ensure this, we shall adhere to Global Investment Performance Standards (GIPS). To ensure fair value, the assets shall meet relevant International Financial Reporting Standards (IFRS) and our Accounting and Valuation Policy.

Market Risk Management

Norges Bank Investment Management shall ensure segregation of duties between a recipient of an investment mandate who shall ensure that market risk is taken and managed, and an independent risk management function which shall identify, assess, measure, monitor, manage and report market risk.

Credit Risk Management

Norges Bank Investment Management (NBIM) shall ensure segregation of duties between a recipient of an investment mandate who shall ensure that Credit Risk is taken and managed and an independent risk management function which shall identify, assess, measure, monitor, manage and report Credit Risk.

Operational Risk Management

The purpose of operational risk management is to systematically identify risk across the organisation, and to initiate necessary risk reducing measures to prevent unnecessary loss. Operational risk management is a tool for prioritising resources, and to balance the costs of risk and risk mitigating activities.

Safeguarding of Legal Interest

Norges Bank Investment Management shall safeguard the legal interests related to Norges Bank’s role as an asset manager and its position as the legal owner of the assets under management.

Investment Universe

The fund invests in a broad range of countries, markets and instruments in order to achieve its investment objectives. These countries, markets and instruments constitute the portfolio's investment universe.

Delegation of Authority and segregation of duties

Decision making structures shall be designed with the objective of promoting transparency and placing authority and accountability at appropriate levels of the organisation. Such structures shall further ensure sound governance, operational efficiency and sufficient segregation of duties in order to prevent fraud and errors.