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Risk Management Registers move centre stage

Is your risk register delivering under pressure?

Advisers may be keen to demonstrate how their technology can bring risk registers into the 21st Century but somehow they often still persist in being the forlorn document of scheme governance, sitting on their own in meeting papers, given a cursory glance from time to time, overlooked in favour of more exciting investment updates.

Their time, has certainly come, this is when a good risk register is centre stage as the single most important governance document a scheme has, and a well-written one inspires confidence that the scheme is well run in members, sponsors and regulators even when under extreme pressure.

Change from abstract to action orientated

Whilst ‘risk’ is a rather abstract idea. People are much more comfortable with ‘actions’, which are concrete and easy to understand. The current situation is showing why relating risk , to mitigations and actions is crucial. 

Scheme business plans and annual calendars are extremely useful and practical working documents. They are action-driven which appeals to us as people, yet it is often overlooked that these ‘actions’ are, of course, the very same items listed as ‘controls’on the risk register.

Putting the annual calendar and risk register in the same document, so the two can be seen side by side brings the concept of active risk mitigation to life and at a time when so many risks are jostling for priority delivers clarity.

New actions are agreed for the annual calendar automatically go onto the risk register as a new control. As events develop and the risk register is updated, new controls are agreed, and they go onto the calendar.

 

 

 

 

What about Dashboards?

With all the clever technology solutions it is easy to get carried away and try to incorporate too many metrics, when as is clear from the current situation, prioritising risks is as important to being able to identify them.

Taking time to pick the main ones for your scheme, and then putting the dashboard on the front of the same calendar/risk register document or online system helps Trustees maintain their strategic objective.

This approach generates a single, strong governance document summarising all of the key controls for your scheme and how they are being managed. It is flexible enough to incorporate even rapid changes and gives the Trustee Board a key area of focus.

Now is the time for risk management registers to assume centre stage.

If you would like to discuss how Pi could help in the management of your scheme please contact enquiries@pipg.co.uk or your usual Pi contact.

Pi Partnership provides specialist independent consulting to employers, occupational pension schemes and Boards of trustees. We are one of the leading providers of independent scheme secretaries and provide professional trustee services to a wide range of pension schemes. Over the last 20 years, we’ve worked with clients ranging from FTSE100 companies to small charitable organisations. For more information about the services, we can offer your business contact us today.

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