Risks

Every investment is accompanied by a degree of risk. The investment risks are an inevitable part of investments and for the most part, it is not only impossible to completely eliminate them, but that would not be in the interest of the membership. On the contrary, the achievement of long-term objectives commands risk management in a manner which will provide adequate return adjusted to the degree of undertaken risk.

In accordance with the legal provisions and the objectives to achieve safe, efficient and successful business operations and protect the interest of its members, the NLB New Pension Fund AD Skopje has implemented a system of risk management to which the invested money in the pension funds are exposed, which includes measuring mechanisms, control and risk management.

For the pension funds, risks represent a probability that certain changes, activities or events may have a negative impact on the money invested in the pension funds, or cause difficulties in the achievement of the strategies for fund management.

  • Fund management includes the management of the following risks:
  • Country risk;
  • Market risk;
    • Risk from change in the market prices of securities;
    • Risk from change in the interest rates;
    • Risk from change in the exchange rates and
    • Risk from change in the liquidity of the securities market;
  • Liquidity risk;
  • Operational risk;
  • Risk from changes in legislation;
  • Risk from failure of the other party to comply and
  • Risk from reconciliation and risk with the bank– custodian.