Strengthening Your Investment Policy

The Investment Policy is a key component in holding your investment adviser responsible for accurately executing the portfolio’s guidelines.

Maintaining and regularly reviewing your organization’s investment policy is an important step toward achieving your financial goals. During your review, clearly state the high-level goals and objectives of your investment reserves. Be sure to include governance procedures such as decision-making authority and discretionary/non-discretionary authorization.

As you review your policy, or if you are developing it for the first time, document the process by which various policy guidelines have been set. If your organization’s financial conditions or key personnel have materially changed, conduct a risk tolerance survey of key stakeholders. Anything you can do to bring discipline to the investment process is wise.

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