Mandate for the Executive Board’s Risk and Investment Committee
Laid down by Norges Bank’s Executive Board on 3 June 2015 and last amended on 17 December 2021, with effect from the same date. The mandate has been laid down pursuant to Section 2-4, sixth sub-section, of the Central Bank Act and Chapter 2-2 of the Rules of Procedure for Norges Bank’s Executive Board.
The Risk and Investment Committee is a preparatory and advisory body for the Executive Board. The purpose of the Committee is to help to strengthen and streamline the Executive Board’s work on advice to the Ministry of Finance on the investment strategy and investment mandate of the Government Pension Fund Global (GPFG), the Bank’s investment strategy, current exposure, assessment of results, the definition and utilisation of risk limits, as well as particularly large and important investments.
2. Appointment and organisation
The Risk and Investment Committee comprises three members and is chaired by the Deputy Governor with special responsibility for following up the management of the GPFG. The other two members are appointed from among the Executive Board’s external members. Members are appointed for a one-year term.
Norges Bank Investment Management (NBIM) and the General Secretariat shall provide the Committee with the necessary assistance. The General Secretariat functions as the Committee’s secretariat.
The Risk and Investment Committee meets whenever the Committee deems it necessary. The Committee shall prepare a schedule for the year’s meetings.
The Committee itself decides who from the administration shall attend meetings.
Joint meetings may be held with other committees as necessary.
4. Responsibilities and authorisations
The Risk and Investment Committee is answerable to the Executive Board for the performance of its tasks. The Committee’s activities do not change the responsibilities of the individual Executive Board members or of the Executive Board as a whole.
The Committee may on its own initiative ask the administration to explain topics and preliminary assessments related to matters scheduled to be brought before the Executive Board at a later date.
The tasks of the Risk and Investment Committee are focused on strengthening and streamlining the Executive Board’s work on advice to the Ministry of Finance on the investment strategy and investment mandate of GPFG, the Bank’s investment strategy, current exposure, evaluation of results, the definition and utilisation of risk limits, as well as particularly large and important investments.
The Risk and Investment Committee shall normally prepare matters for discussion by the Executive Board that pertain to:
- Advice to the Ministry of Finance on investment strategy and the mandate
- Evaluations of the Bank’s investment strategy and results
- Definition of risk limits (with particular weight on market, counterparty and credit risk), as well as any proposals for exemptions from such limits
- Evaluations of current exposure and utilisation of risk limits
- Decisions on unlisted investments that exceed USD 500 million in real estate, renewable energy infrastructure and companies whose boards of directors have stated an intention to apply for listing on a regulated and recognised trading venue
- Investment decisions in investment management that owing to their particular importance are to be discussed the Executive Board
Each year, the Committee shall evaluate its own performance.
6. Minutes, reporting, etc
Discussion documents are normally made available to Committee members no later than five days prior to an Executive Board meeting. In matters concerning advice to the Ministry of Finance, discussion documents shall normally be made available 14 days prior to an Executive Board meeting.
The Risk and Investment Committee submits written recommendations to the Executive Board in individual matters with an account of what has been discussed in particular and otherwise reports from its meetings at the Executive Board meeting immediately following. A possible recommendation may be that a matter be sent back to the administration for further discussion.
In matters from the NBIM CEO concerning advice to the Ministry of Finance, the Committee shall, before the matter is sent to the other members of the Executive Board, submit an assessment to the Chair of the Executive Board of whether the draft from NBIM covers all the issues and matters of concern to the Ministry of Finance and whether the matter is suitable for discussion by the Executive Board, along with the Committee’s recommendation
In matters concerning advice to the Ministry of Finance, the Committee shall submit a written recommendation to the Executive Board, which shall contain inter alia the Committee’s recommendation for a decision. The recommendation shall be submitted by not later than five days prior to the Executive Board meeting.
The minutes of meetings of the Risk and Investment Committee shall be submitted at Executive Board meetings for information.