§ 1305. Risk management. The board shall annually prepare, or cause to
be prepared, and adopt a written statement of investment policy that
includes a risk management and oversight program. This investment policy
shall prohibit the board and the program from borrowing for investment
purposes. The risk management and oversight program shall be designed to
ensure that an effective risk management system is in place to monitor
the risk levels of the program, to ensure that the risks taken are
prudent and properly managed, to provide an integrated process for
overall risk management, and to assess investment returns as well as
risk to determine if the risks taken are adequately compensated compared
to applicable performance benchmarks and standards. The board shall
consider the statement of investment policy and any changes in the
investment policy at a public hearing.