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Case Studies
Risk Management
The problem -
The Pension Regulator has identified the ability to manage risk as one of the most important tasks facing a pension scheme board. Trustee boards can often get bogged down in detail though and fail to address adequately the really key risks.
What we found -
On one pension scheme where Woodley Trustees took over as independent Chair, the trustee board had a very comprehensive list of over 40 key risks. At each trustee meeting they reviewed two risks in detail. It would have taken over three years to review all the risks they had identified.
The solution -
We led the board through a comprehensive process to better classify the risks and then focused discussion on the most crucial six risks. These six key risks would ultimately determine the long term outcome of the scheme. The lesser risks were then reviewed by Woodley Trustees and the Pensions Manager outside trustee meetings and an annual report was discussed with the trustees.
The result -
The key risks affecting this scheme are now much more thoroughly managed and controlled. Regular discussions with the sponsor have aligned the trustees and the company around the key risks facing the scheme and potential mitigating actions for the future.
