Public pension systems face a number of risks in undertaking necessary investment activities. Some risks, such as normal market volatility, are generally unavoidable. Some risks, such as investing in emerging markets, are knowingly assumed and are necessary to implement certain investment policies. Identifying and managing these risks is important to the fiduciaries of MOSERS. An investment policy is in place to ensure that risks are identified and that MOSERS has procedures, processes, or policies in place to address each particular risk area.