The first thing to remember is that in a special examination we look at crown corporations over a cycle. We look to see whether they have systems and practices in place to ensure that assets are safeguarded and controlled, that their financial, human, and physical resources are managed economically and efficiently, and that operations are carried out effectively. In each of the three organizations we are reporting on in this report, we didn't find any significant deficiencies.
On the Public Sector Pension Investment Board, we lay out a number of items in the chapter. We say:The Corporation has the key elements of a strong governance framework, and its governance practices are consistent with industry practices for stewardship and oversight by boards of directors.
We state: The Corporation's risk management practices...provide for identification, monitoring, management, and reporting of risks to protect its assets from undue risk of loss.
We report that their compensation framework and practices are comparable with those of industry and that they regularly benchmark their practices against those of comparable organizations.
Consequently, most of the items we identified in here are some of the strengths of what were going on in the organization. We also identified that the lack of the staggering of appointments to the board of directors may potentially lead to significant turnover in the board membership in 2014 and 2015, so we identified that there is a risk in terms of when the terms of board members expire and the process to replace those board members.