Risk Management

From your day-to-day processes to delivering long term strategic goals, your data is at the heart of reducing risk and creating operational efficiency.

Data underpins almost every element of operating a pension, meaning that data is the foundation for managing risk. Risk management is most effective when it’s done consistently with a long term approach. Short term firefighting may identify a specific problem and fix it, but it is not a holistic solution and doesn’t drive continuous improvement, so data often slips backwards. A considered approach is usually driven by strategic goals such as retiring legacy systems or a long term goal to reduce the scheme’s liabilities.

Our experienced team have worked across the DB and DC market, using data as the key to reduce operational risk as well as manage liabilities.

How can data help with risk management?

When looking at strategic de-risking, member option exercises and insurance, individual member data alongside the scheme rules are fundamental to determining an accurate measure of liabilities.

If your data is not present, accurate and complete it may hold you back when setting strategic goals, such as full funding, insurance or just paying the right benefits to the right people at the right time.

Good data is an enabler and can help to drive you forward – creating future value:

  • Increases your chances of finding a buy-out or buy-in deal, and a capture a good price in a market where demand is high and increasing
  • Allows you to accurately calculate liabilities to inform investment, funding and insurance decisions
  • Creates operational efficiencies in the short and long term
  • Enables demonstrable good scheme governance and meets regulatory and compliance requirements

When your data is in good shape, it allows assets to be calculated to match liabilities and funding objectives to be priced accurately. This is the most efficient way to get the best price.

Your members will also benefit from good data, with:

  • Improved accuracy on projections
  • Enhanced communications – by channel, message and timeliness
  • Speedier processes created through efficiencies

We use our unique technology to analyse the presence, accuracy and interdependent relationship of pension data. We then translate the output into meaningful action and implementation plans for our clients – to help them meet their strategic objectives.

From the point of data collection through to the eventual crystallisation of some or all units the operational flow of data is exposed to risks. Managing these risks is key to delivering operational efficiency, compliance and good outcomes for members.

Evaluating operational risks:

Review of operational processes

  • How is data collected?
  • Where does data flow from and to?
  • What data processes are in place?
  • Where is data stored?
  • How is data updated?

Review of control processes

  • How is data validated?
  • What data controls are in place?
  • Where do data transfers occur – both internally and externally?
  • When do data transactions happen?

Build risk profile and improvement plan

Our analysis enable us to identify where your data is exposed to risks. We then configure our technology to test and validate your data at various points.

The output of these tests enables us to build an improvement plan, this usually includes key areas in the processes or additional controls. You may also need to improve the quality of your data and we can help with this too.

Taking a pro-active approach to risk and data helps data to drive you forward. We can help you realise operational efficiencies in both the short and long term, ensure you are meeting regulatory requirements, demonstrate good governance and inform investment decision making.

Your members will also benefit:

  • Enhanced communications capability – ensuring you can maximise digital channels to realise efficiencies
  • Speedier processes created through efficiencies

How we can help you manage your risks?

From your day-to-day processes to delivering long term strategic goals, your data is at the heart.

We can help you with:

  • Independent data advice
  • Data analysis
  • Process analysis
  • Strategic goals
  • Data improvement plans
  • Process improvement plans

Your data can help drive you forward to the next strategic goal. We can help you make sure your data is an enabler to achieving those goals and fit for the future.