The DGPP Division's risk management team strives to find the best balance between risk tolerance and the ability of Desjardins and its employees to finance the Plan, to ensure it remains sustainable. The team's mission is to identify, assess and mitigate all risks, from interest rate fluctuations to increasing Plan members' longevity. The control measures, strategy adopted, actions taken, tracking indicators and corrective and mitigation measures associated with each risk are clearly defined and assessed on an ongoing basis. Stress tests are performed to get more insight into the dynamics of assets and liabilities and their impact on the Plan. The action plans established for every risk are included in the DGPP's business plan, which puts risk management at the heart of all Plan initiatives.
Effective risk management measures
A diversified and resilient asset allocation strategy
Assets are allocated dynamically and based on risk coverage. The allocation seeks to maximize the Plan's resiliency with as many economic scenarios as possible and to ensure cost-effective funding.
A rigorous and forward-thinking investment plan
The investment plan is a comprehensive, rigorous tool establishing a strategic vision and the key objectives for each asset class. It is used to guide investment decision-making.
Optimized liability matching
Investing in certain asset classes, such as fixed income securities, real estate and infrastructure, helps protect the Plan against interest rate fluctuations. Moreover, a bond overlay strategy also optimizes matching while resulting in higher expected returns.
A customized mortality table
To better estimate how long Plan members will live, the Plan has customized the standard Canadian mortality table by considering actual DGPP members' experience and socio-economic analyses.