Following our successful risk management survey last year, we are now launching, in association with Pensions Age, a second pension risk management survey focusing on:
- the effectiveness of controls
- how pension schemes are responding to IRM.
If you are actively involved in occupational Trust-based pension arrangements, we would appreciate it if you could complete this short survey.
It will take no longer than 10 minutes to complete and the survey will close on 27 July 2018. We will not publish any names of participants or their organisations in our report.
Highlights from the 2017 report
Download the 2017 report [PDF]
- With just under 30% of respondents telling us that their pension scheme has not reviewed its risk register in the last six months and 8% not having done so in the last 12 months, there is definite scope for improvement when it comes to pension risk management.
- Trustees of Defined Benefit (DB) schemes focus primarily on managing financial risks, whereas Trustees of Defined Contribution (DC) schemes see the greatest risks as being those potentially resulting in members being treated unfairly or making the wrong decisions.
- The key risks concerning Trustees are:
- DB pension arrangements: funding volatility, the strength of the employer covenant and implementing an inappropriate investment strategy.
- DC pension arrangements: delivering ‘Value for Members’, designing the default fund and poor communication.
- IT/cyber/data protection risks, which applies across both types of pension arrangements.
- Pension scheme Trustees are comfortable managing financial and regulatory risks, but less comfortable dealing with non-traditional risks. Risks which need to be managed better going forward include:
- fraud/cyber/data protection
- changing advisors
- quality of communications (DC, in particular).