Is Risk Management the New Frontier in Pension Governance?

Susan Seller writes in Benefits Canada on risk management and how its importance isn’t new for the majority of defined benefit pension plan sponsors and administrators.

She writes, "Pension regulators have increased their focus on risk management as a way to address investment risk and promote plan members’ benefit security. Simply put, in an increasingly complex environment, pension regulators are now attempting to address pension plan risk management in a more focused and coordinated way."

"The recent regulatory initiatives and focus on risk management guidance for pension plan sponsors are designed to address that gap. In an increasingly complex investment environment and uncertain economic climate, it’s more important than ever for plan administrators to implement risk management practices that assist them in ensuring plan assets are invested prudently and pension plans are managed consistently with their fiduciary obligations to plan members and beneficiaries. For that reason, risk management may represent the new frontier in the realm of pension governance."

The full article can be found on the Benefits Canada website.