![]() Interest rate, foreign exchange, and commodity management objectives are to protect the University against material economic exposures and variability of results due to these elements. Commodity risk (primarily energy related).Financial Risk Identification This policy is primarily concerned with: All employees of the University must adhere to this policy. This policy does apply to transactions in the McGill Investment Pool, which is managed by the Office of Investments. Procurement Services is the only group allowed to engage in risk management activities involving the use of derivative instruments to protect against commodity risks (including volatility associated with energy prices) P4. Office of Investments is the only unit allowed to engage in hedging activities involving the use of derivative instruments including the buying and selling of interest rate and foreign exchange derivative products. ![]() Derivatives are used for hedging purposes solely to mitigate risk. None of its units reporting into the VP (A&F) will engage in speculative use of derivatives. It is the responsibility of the Office of Vice-Principal (Administration and Finance) (“VP (A&F)”) to implement and maintain this policy and ensure its application. Refer to the Procedures for details regarding the implementation and interpretation of the following policies. ![]() It is the general objective of the University to avoid unexpected losses and to minimize the potentially adverse impact that financial risk exposures may have on the University.įinancial management will be executed in accordance with the terms of and pursuant to the “Loi sur l’administration financiere” (L.R.Q., Ch A-6.001). Discourage any activities that are not clear or may be interpreted as increasing risks and.Limit circumstances / activities that expose the University to risk from speculative activities.Make hedging decisions based on the institution’s objectives and tolerance for risk, rather than market conditions.Choose hedging products which are effective in managing risk. ![]()
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