Strong governance, a risk-aware culture and defined risk tolerances are integral to The Schmidt Investment Group and CIBC. This framework includes processes for identifying, assessing, mitigating, monitoring and reporting all existing and emerging risks. We are continuously monitoring and working to mitigate the following risks: legislative, regulatory, reputational, operational and investment.
In working with our clients, we “seek to understand, before being understood”. We recognize that each client will have varying risk limits and that they will expect those limits to be monitored. We take the position that “risk” can mean different things to different clients. Therefore, our risk management strategies relating to portfolios are customized depending on each client’s Investment Policy.
Our focus is centered on protection of capital while striving to generate superior rates of return. Therefore, our philosophy relating to portfolio risk and return is that downside risk protection is far more important than upside returns. Participating fully in the downside will always negatively impact a portfolio more than not fully capturing upside returns. Clients have been able to achieve strong investment performance over time by capturing only a portion of the downside while participating well in the upside.
We understand that being entrusted with the assets of our clients is both our greatest honour and our greatest responsibility.
CIBC’s strong national and global reputation spanning the 1800s, 1900s and now the 2000s has taken enormous effort to build. We appreciate the reality that one’s reputation can be tarnished overnight. Therefore, as an organization we put risk management at the forefront of all that we do – and that begins with protecting the wealth of our clients.