Clarity of objectives
helps focus time and cost on those tasks that are aligned to your objectives
Pension Risk Management
Risk management is a key element of core governance and features heavily in the Pension Regulator's General Code of Practice. Using Aon's breadth of experience across a wide range of areas, we have developed solutions to support our clients with pension risk management which can be tailored to client needs. Aon offers skilled pensions risk consultants, online risk management tools and can provide ongoing support to clients, including developing Own Risk Assessments.
Risk Management for pension scheme
The risks associated with running pension schemes are complex and the outcomes significantly impacted by how well those involved manage these risks. In addition to more traditional risks like longevity, investment volatility and data, we are also facing many new risks. These include those associated with the increase in complexity of options available to members, cyber risk, the risk of missed opportunities when pricing is transient or markets are volatile, and increasing focus from those running pension arrangements on the climate change and the environmental, social and governance impact of the pension scheme.
The Pensions Regulator's General Code of Practice requires that the Risk Management Function is identified and documented and that trustees prepare an Own Risk Assessment to assess the effectiveness of their internal controls, at least every three years.
Why is risk management important for pension schemes?
- Informed decision-making – supports strategic planning by identifying and prioritising key risks, improving governance and resource allocation
- Resilience to shocks – effective risk management helps schemes withstands events like market volatility, cyber attacks and operational disruptions, protecting members benefits
- Member and reputation protection – helps prevent financial loss, reputational damage and regulatory penalties
Benefits
-
-
A clear path through the agenda of work
brings clarity to the tasks and deliverables needed
-
Reduces time needed and overall cost
A well thought through strategy reducing inefficiencies
-
Eliminate unnecessary tasks
that do not contribute good value against the overarching objectives
How Can Aon Help?
We have the experts to support you, from basic risk registers, training and workshops, online risk management tools, through to being your risk consultant.
