Issue - meetings
Risk Management Policy and Register
Meeting: 27/11/2017 - Pension Board (Item 9)
9 Risk Register, Risk Management & Internal Controls Policy PDF 123 KB
Additional documents:
- Enc. 1 for Risk Management Policy and Register, item 9 PDF 111 KB
- Enc. 2 for Risk Management Policy and Register, item 9 PDF 177 KB
Minutes:
Bola Tobun, Investment & Treasury Manager presented a report which detailed the Risk Management Policy for the London Borough of Tower Hamlets Pension Fund. The report also included a Risk Register and set out the Council’s approach to internal controls in respect of the Pensions Fund. The report was tabled at the Pensions Committee on 21 September 2017
Members welcomed the report and were advised that the Risk Management Policy was still in working progress. Officers commented that a lot of work had been undertaken in relation to the document and that further work would continue. Overall the current Risk Management Policy was viewed as a ‘good starting point’ and it was noted that the document would continue to evolve.
Members held an in-depth discussion about the Risk Management Policy and noted the following.
· Risk - Failure to Manage Cost
There are two methods identified to help manage cost. This includes obtaining a cost breakdown from investment managers and comparing the sums. These figures will determine whether services would be cheaper if they are procured directly or through the LCIV. In addition the cost of Administration would also be considered. Members were advised that the Government produced data about local Authority Pensions Funds and that these figures would be used in benchmarking exercises. The above undertakings would be included in the LBTH Pensions Fund Annual Review
· Risk Accounts balance end of May.
Officers advised that work will be undertaken to ensure that steps are in place to ensure that questions are answered throughout the year and that the Service was aiming to publish 2017 / 2018 Accounts before the end of the financial year.
· Responsibilities
Members noted the Pensions Board Manager was Bola Tobun, Investment and Treasury Manager, Resources. The Pensions Manager is responsible for overseeing The Tower Hamlets Pensions Fund Risk Management Process (Risk Identification, Risk Analysis, Risk Control and Risk Management)
· Monitoring of the Risk Policy
Members were advised that the Independent Governor Advisers were LBTH Legal Service.
· Key risk to the effective delivery of the Risk Policy
Members commented about ‘Officer’s Risk’ and were advised that this risk would be included.
Members commented that the Pensions Board was rarely mentioned in the document; and was only referred to in Point 2 under Governance Risk (Frequent and extensive turnover of Committee / Board Members). Officers reminded Members that the Risk Management Policy was still in working progress and advised that Members of the Board and Committee received sufficient training and that they needed to be pro-active about attendance at meetings.
Members raised questions about GOV15, (Failure to Comply with Guidance Issued by The Pensions Regulator TPR) and noted that one of the risks was that the Council could experience reputational damage. Members noted that both the Pensions Board and Pensions Committee were part of the mitigating control factors in relation GOV15. Members stressed that there should be one key owner in relation to GOV15 and that controls/ mitigation should not be shared. Members advised that the role of the ... view the full minutes text for item 9