Risk management and governance
The Pensions Act 2004 and the Pensions Regulator’s Code of Practice 09 Internal Controls have increased the importance of risk management and mitigation as well as governance for trustees.
We believe that there are two aspects of governance for trustees to consider. These are:
- The Code of Practice 09 Internal Controls recommends the use of a risk review process to identify existing risks across all aspects of a pension scheme. Through such a process, risks are graded by severity of potential impact and likelihood of occurrence. Trustees are then able to consider each in turn and put in place the appropriate mitigation, if necessary.
We have developed a risk review matrix that is tailored to individual clients through thorough investigation and discussion resulting in a risk register. Where required, we are able to provide the necessary services to ensure that the appropriate controls are put in place.
This process should be reviewed on at least an annual basis.
- Governance is not just about compliance with legislation, however. We are able to provide advice and support to trustees who wish to improve the quality and efficiency of their operation. For example, this could include a review of trustee meeting procedure or use of professional service providers.
Truestone is able to provide advice and support in both these areas independent of other interests and conflicts of interest.
