Issue - meetings
Quarterly Review of Risk Register
Meeting: 06/09/2021 - Pension Board (Item 6)
6 Quarterly Review of Risk Register PDF 247 KB
Additional documents:
- Appendix. 1 for Quarterly Review of Risk Register, item 6 PDF 398 KB
- Appendix. 2 for Quarterly Review of Risk Register, item 6 PDF 6 MB
- Webcast for Quarterly Review of Risk Register
Minutes:
Ms Miriam Adams, Interim Head of Pensions and Treasury introduced the report saying three new risks had been added during the quarter to the register in line with the recently issued Cyber Score Card by the Scheme Advisory Board and draft code of Practice by the Pensions Regulator.
She referred Board members to paragraph 3.2 of the report which listed the new risks and said these risks had been part of boarder risks previously. They had been separated due to their recent importance plus the Scheme Advisory Board’s raised profile on risk management and cyber risks. She said the LGA have been working with AON which had provided a checklist for schemes to use. Ms Adams said whilst this was not mandatory, it was part of good practice for the scheme and fund to take it upon itself to complete the checklist.
Ms Adams provided a detailed update of the risks identified in Appendix 1.
In response to questions from Members the following was noted:
- The Chair said there were five red rated risks. He asked if the risks relating to pension administration would reduce when staff had been recruited to the vacant posts. Ms Adams responded saying not all risks could be eliminated however they would manage the risks and once the work had been completed to satisfaction the risk would be moved to amber.
- Referring to paragraph 3.4, Mr Thompson stated he was not convinced the rating for G5 should be moved from amber to green. He pointed out that in the appendix this had been referred to as AG5. He said this was a very high hurdle to determine, as the statement referred to members understanding and appreciating the benefits plus being able to make informed decisions. Mr Thompson said the internal controls identified such things as a new website, surgeries, communications strategy etc but these were inputs, they did not measure the outputs. In other words, did fund members understand and appreciate the benefits and felt they could make informed decisions.
- The Chair stated the point made by Mr Thompson was a valid one and said clarity was needed as to what the risk was measuring. Following discussion, the Board agreed an action to take forward.
- ACTION: The Pensions Team to undertake a survey in 18 months’ time to see how the internal controls mentioned, such as the website, surgeries etc have impacted on the fund members understanding and appreciation of their benefits and if they feel confident in their decision-making.
The Pensions Board RESOLVED to:
- Note and comment on the report and detailed risk register as set out in Appendix 1
- Note the amendments to existing risks listed in section 3 of this report; and
- Note the London Collective Investment Vehicle (LCIV) Climate Change Policy Report Appendix 2.