Building Risk Resilience for the Long Term
AIMCo operates in a highly complex and uncertain global environment. Geopolitical fragmentation, ongoing conflicts, the reconfiguration of global trade and supply chains, persistent inflationary pressures, evolving artificial intelligence (AI) impacts (including uncertainty around the durability of elevated AI‑related capital spending, disruption of business models and increasing AI‑enabled cyber threats) and the rise in seemingly idiosyncratic credit events are contributing to heightened market volatility. In this context, uncertainty remains a constant.
Risk management seeks to understand uncertainty through the estimation of potential outcomes and their probabilities. This understanding is critical to delivering persistent, superior risk-adjusted returns for our clients over the long term.
AIMCo is committed to understanding our risks and proactively building risk resilience to help navigate uncertainty and support long-term value creation.
We do this by:
» Leveraging and evolving our adaptable Enterprise Risk Management Framework
» Embedding robust risk management strategies into our investment and corporate practices
» Assessing top risks on an ongoing basis
» Integrating risk management into the strategic planning process
» Providing appropriate board and executive risk oversight
» Setting the “tone from the top” on the importance of risk management across all activities
» Understanding client investment objectives, risk appetites and strategic plans
» Promoting a risk-conscious culture
2025 Key Initiatives
» Refreshed enterprise Risk Appetite Statements
» Updated various Risk Management governance and methodology documents
» Implemented revisions to Product Risk Mandates (measures and limits) for investment products being updated
» lFurther enhancements to risk reporting for both clients and internal stakeholders as well as AIMCo’s risk monitoring and control process to incorporate granular risk metrics and improved exposure drilldown capabilities
» Further refinements to credit and liquidity risk measurements and enhancements to risk tracking and reporting for market liquidity measures
» Conducted thematic scenario analysis and stress testing to help guide investment and risk management decisions
» Provided compliance assurance for clients and continued to engage clients on their investment risk appetite and tolerance
Key risks we monitor and manage
Investment Risk
Exposure to achieving stated investment objectives
» Independently assess and measure, from both top-down and bottom-up perspectives, the risks being taken and challenge accordingly within a well defined governance structure
» Seek to ensure investment products have a risk/return profile consistent with their product descriptions
Liquidity Risk
Exposure to having inadequate cash available to settle payment obligations as they come due
» Seek to ensure a supply of high-quality liquid assets and diverse funding sources to meet potential liquidity demands in a stressed environment and over multiple time horizons
» Stress test various scenarios to assess resiliency in a liquidity crisis; independently measure and monitor liquidity risk at the client level
Information Security Risk
Exposure to unauthorized access, misuse, disclosure, disruption, modification, or destruction of information and/or information systems
» Maintain a dedicated team of cyber security professionals
» Continue to invest in a cyber resilience posture that is commensurate with the increased sophistication of threats
Corporate Execution Risk
Exposure to poor implementation of strategic organizational and transformational initiatives/programs
» Effective planning, resource allocation, implementation and monitoring of strategic initiatives and transformational programs
» Establish robust governance structure to oversee strategic initiatives and transformational programs
» Maintain change communication that is clear, proactive and provides consistent messaging
» Continuously evaluate progress to ensure the change process stays on track and enable timely intervention, remediation and/or recalibration, as needed
People & Culture Risk
Exposure to an insufficiently staffed, engaged and skilled workforce that demonstrates AIMCo’s core values and behaviours and is prepared to meet evolving business needs, requirements, and stakeholder expectations
» Prioritize workloads
» Offer services that support mental health needs
» Develop our people through training and leadership programs
» Monitor engagement and anticipate or respond to trends