Our Risk Management Framework
Risk is an integral part of investment. It is characterised by uncertainty, and is measured in terms of the potential impact of an occurrence and the likelihood of the event taking place.
The Libyan Investment Authority (LIA) is entrusted to protect and grow the wealth of the Libyan people for future generations. To achieve this, we must proactively manage risks.
We understand the importance of holistic risk management, to comprehensively identify and analyse all types of risks across asset classes, as well as ensure that any potential issues are mitigated and managed efficiently.
Our Approach to Risk
Our risk management approach is supported and reinforced by the continued emphasis on risk awareness throughout our organisation.
We are focused on maximising our ability to deliver the LIA’s strategic objectives, promoting sound decision-making, and safeguarding the LIA and our employees.
RISK GOVERNANCE
RISK CULTURE
RISK APPETITE
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RISK GOVERNANCE
Our Board of Directors maintains full control and oversight of our risk framework and risk-return objectives; while our Audit, Risk & Compliance Committee is responsible for regularly monitoring and evaluating the effectiveness of our risk management framework, policies and practices. -
RISK CULTURE
All LIA employees have a critical role to play in maintaining an appropriate risk environment. We are committed to providing widespread training and education for our employees regarding risk management, and employees are expected to demonstrate the highest standards of ethics, integrity and professional competence. -
RISK APPETITE
Our investment decisions must prioritise the long-term, while keeping in line with our founding laws and international best practices. The specific amount and types of risk the LIA is willing to take in order to meet its strategic objectives is defined in our Risk Appetite Statement.
