The Capital Investment Plan Act, 1993, sets out a broad framework for the OFA’s operations. This is supplemented by a memorandum of understanding with the Minister of Finance as well as internal OFA policies.

In carrying out its mandate, the OFA faces financial risks that are inherent in managing financial assets and liabilities. Risk management policies ensure that these risks are identified, monitored, evaluated, reported and managed. The OFA manages financial risk through a comprehensive framework of debt management infrastructure, policies and procedures.

Overview

Board of Directors

• Reviews and approves key risk management policies as well as the OFA Annual Report, including its financial statements.
• Supervises the management of the Province’s debt and investment portfolio.

Audit Committee

• Oversees the financial reporting process on behalf of the Board of Directors.
• Reviews key risk management policies, internal audit reports and the financial statements.

Management Committees

Risk Management Committee

• Reviews market updates and outlook.
• Reviews current borrowing, investing and debt management positions and strategies.

Borrowing Strategy Committee

• Reviews economic conditions, fiscal plan and capital markets outlook.
• Reviews borrowing and debt management activities and management reports, cash flows and the public debt interest forecast.
• Reviews credit exposures, operational limits and procedures related to financial operations.
• Approves amendments to risk management procedures.
• Recommends amendments to risk management policies to the OFA, OEFC and OSIFA Board of Directors.

Risk Control Division

• Monitors, measures, assess and reports upon financial market and counterparty risks and performance associated with borrowing, debt management and investment of liquid reserves.
• Reports on a regular and timely manner to the Board of Directors and senior OFA management on the status of the Province’s financial market activities, associated exposures and compliance with approved policies.
• Develops risk management policies and procedures in line with best industry practices in an evolving business environment and monitors compliance with Board-approved policies, limits and procedures and monitors portfolio performance and trends.
• Assesses counterparty credit risk and manages rating agency relations.