CalPERS has created the office of enterprise risk management, led by the new position of chief risk officer, and plans to conduct a search for an executive recruiting firm to find candidates to fill the post, said spokesman Clark McKinley.
The $205.5 billion California Public Employees’ Retirement System, Sacramento, hasn’t set a time frame for developing the process for the search, Mr. McKinley said.
Larry Jensen, assistant executive officer, was named Wednesday by the CalPERS board as interim chief risk officer until the recruitment search is completed. Mr. McKinley said.
The chief risk officer will report to Anne Stausboll, CalPERS CEO, and the system’s board, Mr. McKinley said.
The new office “will bring together all aspects of risk management, including internal compliance operations, privacy and security, disaster recovery and business continuity programs,” Ms. Stausboll said in a statement.
CalPERS’ existing investment risk management team will remain separate from the new office, although they will work together, Mr. McKinley said. That team is led by Farouki Majeed, senior investment officer for the asset allocation/risk management unit, and Richard Roth, senior portfolio manager in charge of risk management, and reports to Joseph A. Dear, chief investment officer, Mr. McKinley said.
The creation of the new office and position was recommended by the CalPERS ad hoc risk management committee, formed last year to take a comprehensive examination of risk management governance, structures and processes.
In addition, CalPERS introduced a whistleblower hotline to identify fraud and waste. The Ethics Helpline, operated by a private company, EthicsPoint, will enable CalPERS to receive tips, concerns and other information regarding possible wrongdoing, including conflicts of interest, fraud and other misdeeds. Whistleblowers can access it by calling (866) 513-4216 or through http://calpers.ethicspoint.com as well as through a link CalPERS plans to place on its home page at http://www.calpers.ca.gov.