N.Y. General Business Law § 1305: Risk management

§ 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.