中国投资有限责任公司

Investments

Objective and Approach

The objective of risk management is to put in place effective policies, mechanisms, systems, and processes for investment and operations to maximize the returns for the shareholder within an acceptable risk tolerance.


Risk management is a company-wide effort involving every business line, department, and individual. It is embedded throughout the investment life cycle, from the overall portfolio to general asset classes and to specific investment strategies and sub-strategies.

System and Mechanism

At the decision-making level, CIC strengthened its risk management governance structure. A Risk Management Committee was established under the Board of Directors to enhance its guidance, coordination, and oversight of major risk management issues. Under the Executive Committee, an Enterprise Risk Management Committee was formed with three specialized sub-committees, each focusing on distinct business areas, further enhancing targeted risk management capabilities.

At the execution level, CIC rigorously enforces its “three lines of defense” under a multi-tier, pan-asset class, and whole-process risk management framework.



Comprehensive Risk Management

CIC has enhanced its risk management framework by improving risk committee operations at all levels, updating guidelines, and harmonizing risk prevention and control efforts across business segments. Our comprehensive framework covers twelve key risk categories: market, credit, operational, liquidity, country, strategic, legal, reputational, geopolitical, cybersecurity, compliance, and climate risks. We have continually refined risk management tools across multiple levels, from total portfolio to individual asset classes and specific portfolios or deals. These enhancements have bolstered our risk monitoring and management capabilities, keeping investment activities within defined risk tolerances.

Market Risk Management

Responding to changing market conditions, we prudently formulated asset allocation plans while continuously optimizing both asset allocation and portfolio construction. We refined our risk budgeting and risk limit frameworks. We adjusted our public market portfolio composition to capitalize on favorable opportunities. For alternative investments, we conducted granular, multi-dimensional risk assessments. Our research focused on key market topics and case studies of significant risk events.

Credit Risk Management

Our Sovereign Credit Risk Report provided regular analysis of global sovereign credit risk trends. We conducted debt sustainability assessments for major economies, updated sovereign credit scores, and identified key country-specific risks. We performed timely counterparty credit risk evaluations and continuously monitored credit risk developments across our portfolios.

Internal Control and Operational Risk Management

We enhanced due diligence requirements and implemented dynamic, adaptive planning of control policies and procedures. Effectiveness evaluations of control policies and procedures were strengthened, and policy manuals made more user-friendly. We conducted targeted audits and standardized post-investment monitoring practices. Through retrospective analysis of operational risk events, we reinforced our operational risk management framework.

Reputational and Compliance Risk Management

We strictly adhered to the laws and regulations of our investment destinations while respecting local community concerns. We ensured compliant information disclosure as required by law. In line with company policies, we enhanced our reputational risk management processes, improving mechanisms for issue identification, assessment, response, reporting, and coordination. These efforts reinforced our standing as a responsible corporate citizen and respected partner.

Integrity Risk Management

We conducted a targeted campaign against overseas corruption and revised our guidelines for overseas integrity risk management. We assessed and updated the Integrity Risk Management Manual, with revised risk level assessments and enhanced control measures.

Geopolitical Risk Management

We formulated a three-year risk mitigation plan and refined our key risk indicators (KRIs) and consultation processes for geopolitical risks. We issued regular Geopolitical Risk Report, with analysis of major risk events.

IT Risk Management

We comprehensively assessed security vulnerabilities in data, software, hardware, and systems. We systematically enhanced our data protection and network security defenses.

Investment Portfolio Decision-marking Process