Integrated Risk Management

Minimising risk through a structured process

How we can help

Trustees of defined benefit schemes have an obligation, under the guidance of The Pensions Regulator, to examine the interaction between three component risks:

  • Employer covenant
  • Investment
  • Funding

The objective of an Integrated Risk Management program is to manage and mitigate the risks inherent in defined benefit schemes.

Our experienced and qualified team can take a close look at how each of these components align, prior to recommending an Integrated Risk Management framework and implementing any potential contingency plans that may need to be established.

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Pensions Governance services

Many trustees have had their fingers burnt in underestimating the value of good governance and yet, it is a critical factor in determining the funds’ success. We will advise and help you adhere to every aspect of governance, ensuring that the rewards from having a good pension scheme in place are realised.

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    Data management

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    Communications strategy

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    Member access, including online modelling facilities

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    Scheme accounting services

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    Payroll services

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    Member engagement and monitoring strategy

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    Record keeping

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    Systems and procedures

Our 5 Step framework which can be accommodated by most schemes

Step 1: Planning 

  • Determine the scheme and employer’s objectives
  • Agree a relevant proportionate approach

 Step 2: Risk Identification and Assessment 

  • Identify funding, investment and covenant risks
  • Assess the impact and interaction between each risk
  • Assess the employer’s ability to support the scheme and capacity of risk in comparison to that of the trustees

 Step 3: Risk Management and Contingency Planning 

  • Assess the current position and determine whether the employer and trustees are comfortable or whether changes are required
  • Understand how the employer covenant may impact on the investment and funding strategies, and develop contingency plans should strategies need to be revised

Step 4: Document the Framework and Decisions 

  • We bring clarity and assist with ongoing monitoring and core efficient decision making, with a focus on the main decision points

Step 5: Cyclical Risk Monitoring

  • The framework doesn’t finish at this point! High level monitoring is carried out at least twice a year to periodically reappraise, respond quickly to emerging risks, and implement further action plans

Need more help? Contact us today.