Risk
Risk is increasingly on the business agenda and through vehicles such as the PPF and Sarbanes-Oxley, it is now a major item on trustees’ agenda too. Go Pensions can help identify, evaluate, mitigate and create contingency plans for operational risks in areas such as:
• Compliance
• Calculations
• Staff dependency
• IT systems
• Procedures
• Business recovery
There are many regulations to comply with but the priorities vary according to circumstances. Risks can never be totally removed, especially when people are involved. In fact, risks often originate from outside the pensions function, e.g. changes to an HR system.
Solution
An Operational Risk Review will highlight potential infringements of compliance regulations as well as many other risks inherent in administration.
Testing calculations requires a rigorous and systematic approach. Proper testing is time-consuming, but reliable automated calculations are a real efficiency boost.
Solution
A Calculations Audit focused on system testing will identify how rigorous your testing is and the extent to which you can control the level of risk.
Concerned about over-dependence on individuals? Experiencing staff bottlenecks? Hard to train new or temporary staff?
Solution
An Operational Risk Review will highlight any dependency on key individuals. If it is of particular concern, a Sourcing Strategy Review may be appropriate to assess the outsourcing option. In a larger department, an Organisation Structure Review may be appropriate to establish a spread of knowledge, or development of a Procedures Manual may be sufficient to mitigate the risk.
Modern IT systems are complex and frequently interdependent. Interfaces between them update data, so incorrect interfaces can corrupt data. Poor management reporting or workflow systems may expose
breaches of statutory service levels – instead of preventing them!
Solution
A Pensions Technology Review will identify the parts of the systems that carry significant levels of risk.
Does post disappear into a black hole? Excessive time taken for some tasks? Confusion over payroll data updates? Excessive checking? Adverse comments in an Audit report?
Solution
A Go Pensions Administration Procedures Review will identify any areas of risk or concern and recommend changes to mitigate them. Where a radical change to operating processes is needed, a full Process Review may be the most effective option.
Business recovery plans are an invaluable asset in times of disaster. Records may be lost and / or staff denied access for several days. Even a relatively minor computer crash is a risk which needs planning for.
Solution
Through the application of our business recovery planning template, Go Pensions can help you develop a business recovery plan that is robust and appropriate to your risk profile.
For more information about the Go Pensions service, visit
Our Services page