Effective pension fund risk management provides management with clarity and security in operation and management of the pension fund, beneficiaries with transparency and integrity in the fund scheme and the risk management of it, etc. Thus, successful pension schemes are those with processes and systems to efficiently identify, assess, control and mitigate risks.
Through this course, you will acquire the required experience and knowledge to partake and successfully oversee pension fund risk management, thus proving your potential to your organisation, fostering rapid career growth and progression. The course content affords global exposure and will set you up for challenges at a global level.
COURSE OBJECTIVES
The key objective of this pension fund risk management training course is to empower professionals with:
- detailed knowledge and information regarding pension and relevant pension plans and funds worldwide
- a comprehensive understanding of various methods for pension fund risk management
- an enhanced perspective and greater maturity to analyse situations and circumstances and predict future risks to be able to set controls in place in the present day
- the ability and experience to regularly audit existing processes and systems of one’s organisation to stay updated with the newest methods and concepts related to pension fund risk management for one’s organisation
- the overall skill set and capabilities to oversee end-to-end pension fund risk management, thereby helping one’s organisation stay relevant and conduct effective risk assessments for greater success, in turn, building trust in one’s capabilities and potential to grow to higher positions within the organisation
- the necessary exposure to global practices and standards to be able to compete with fellow professionals at a global level, thus securing one’s future as a professional in pension fund risk management
- adequate analytical skills to accurately assess all data points before drawing conclusions in building a framework or managing risks for the fund
COURSE OUTLINE
Types of Pension Plans
- Executive pension plans
- Group personal pension
- Master trust pension
- Self-invested personal pension
- Small self-administered schemes
- Stakeholder pension
Common Pension Risk Factors
- Investment or market risks
- Counter-party default risks/credit risks
- Funding and solvency risks
- Liquidity risks
- Asset—Liability mismatch risks
- Actuarial risks
- Governance and agency risks
- Operational and outsourcing risks
- External and strategic risks
- Legal and regulatory risks
- Integrity risks
Benefits of Enterprise Risk Management
- Shareholder perspective
- Regulator perspective
- Beneficiary perspective
Core Aspects Associated with Pension Risk Management
- Plan design
- Funding strategies
- Investment strategies
- Risk transfers
Four Broad Categories of Risk Management Frameworks
- Management oversight and culture
- Strategy and risk assessment
- Control systems
- Information, reporting and communication
Components/Phases of a Pension Risk Management Strategy Framework
- Corporate objective definition
- Potential strategy analysis
- Scoring and implementation
- Monitoring and refining
Elements of a Comprehensive Investment Policy
- Investment objectives
- Asset allocation
- Diversification
- Liquidity need
- Foreign exchange exposure
- Valuation methodology
- Use and monitoring of derivatives
- Asset—Liability matching targets
- Performance measurement, monitoring and benchmarking
- Control procedures (risk tolerances/risk monitoring procedures)
- Reporting format and frequency
- Investment in alternative assets
- Leverage of funds.
