The Desjardins Group Pension Plan’s (DGPP) proactive risk management strategy aims to ensure that it’s financially stable and able to meet its commitments. The strategy is constantly evolving, positioning us as a leader in industry best practices.
A proactive and integrated approach
We use advanced modelling, projection and simulation tools to guide our decisions. This integrated approach enables us to identify, assess and manage risks across all DGPP activities. We take the necessary risks to generate an adequate long-term return. We also implement strategies to stabilize and protect the plan’s financial health in different possible scenarios.
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Main risks
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Interest rates
Changes in interest rates have a direct and significant impact on the plan’s financial health.
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Life expectancy
Plan members living longer than expected or updates to mortality tables could drive up the plan’s costs. |
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Market volatility
Financial market volatility can generate negative returns, which can impact the contributions needed to fund the plan.
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Liquidity
The plan must have sufficient liquidity to fulfill its financial obligations at all times.
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How we mitigate risk
Our approach is based on several complementary strategies that strengthen the plan’s resilience.
Comprehensive risk register We use dynamic dashboards to help identify the risks related to the plan’s administration and financial management. Each risk is assessed and tracked using indicators with set targets and ranges so we can quickly adjust our strategies when necessary.
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| Risk management tools
We use industry-recognized risk management tools to quantify, assess and manage the financial risks associated with the plan’s assets and liabilities.
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Investment support
Our risk management experts work with our asset managers to make sure we’re taking the right amount of risk based on the plan’s objectives.
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Resilience during financial crises
We actively take part in Desjardins Group’s integrated stress test exercises to ensure the plan is resilient in various financial environments.
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Customized mortality table
Every year, we adjust the Canadian mortality table based on the actual experience of plan members and socio-economic analyses. This improves our life expectancy estimates and helps us better plan for future commitments.
| | Climate risk analysis
We expanded the scope of analysis for real assets subject to climate scenarios, by incorporating new unforeseen physical events and additional transition scenarios. One of our key priorities is the plan’s resilience to climate change.
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