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Risk Management

As a pension fund manager, you face the challenge of ensuring the correct execution of your members’ pension plans in a complex and constantly evolving environment. We assist you in effectively managing risks so that your pension fund remains robust and sustainable.
Thanks to our experienced team of experts, we help you develop a strategic risk management policy tailored to the specific requirements of your pension fund and compliant with current laws and regulations.

What does this service include?

  • Development of a risk management policy aligned with the objectives of your pension fund and the risk appetite defined by the board of directors, formalised in a risk management guideline.
  • Implementation of an appropriate risk management system designed to help pension funds develop a structured and systematic approach to risk management. It consists of the following key elements:
    • Risk Identification: We help you map all relevant risks to which your pension fund is exposed: actuarial risks, investment risks, operational risks, corporate risks, and strategic risks (according to the applied risk classification).
    • Risk Assessment and Measurement: Using quantitative and qualitative methods, we assess the potential impact and probability of each risk, providing you with a comprehensive view of your fund’s risk profile. We favour an interactive approach through a workshop, promoting open discussion between the board of directors and other stakeholders.
    • Risk Management Measures: For each identified risk, we evaluate or define the necessary management measures to limit, avoid, accept, or transfer them. This includes developing a risk management strategy and implementing mitigation measures, including appropriate internal controls (as part of first-line control).
    • Risk Monitoring: Our system ensures continuous monitoring of risks and their management measures. This allows you to intervene quickly in case of changes in market conditions or your fund’s risk profile.
    • Risk Reporting: Clear and timely communication to the board of directors and regulatory authorities is essential. We ensure the creation of a risk heat map (a visual tool that maps the different risks of your pension fund according to their impact and probability), as well as the establishment of a risk register and an incident register.
  • Organisation of an ORA (Own Risk Assessment): This is a fundamental element of the risk management function for pension funds. Our experts assist you in preparing and conducting a triennial ORA exercise (including the ORA report) that meets the legal requirements of the IORP II directive and helps you understand the links between risks, strategy, and the financial/ al situation of your fund. This process allows you to structurally assess your fund’s risk exposure in relation to your objectives, risk profile, risk appetite, and financial position, so that appropriate measures can be taken if necessary.
  • Support for the Board of Directors: The Risk Manager as a Strategic Partner. An effective risk management process goes beyond compliance and reporting; it also aims to strengthen decision-making at the board level. Our Risk Managers act as strategic partners to the Board of Directors and provide crucial support for making informed decisions based on a thorough understanding of your pension fund’s risk profile.
  • Involvement of other key functions and the DPO: The Risk Manager collaborates with the heads of the actuarial, compliance, internal audit functions, as well as the DPO (Data Protection Officer), each in their area of expertise, particularly in the context of the ORA exercise.

To carry out this mission, Conac combines in-depth knowledge of the pension world with a pragmatic approach to risk management. Whether you need to completely outsource your risk management function or support your existing team, we provide you with the expertise and tools you need to control risks and protect your fund.

Would you like to know how Conac can help you?

Please fill out the contact form, and we will get back to you promptly. We are ready to offer you expert advice and customized solutions.

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