Miriam Adams, Interim Head of Pensions and Treasury, introduced the regular update report on the Fund’s Risk Register and Risk Policy. She explained that these were an important policy and register and so they were regularly presented to the Board and Committee for review.

She asked the Committee to note a number of points including that:

·       There was a specific risk register item on climate change. It was not yet mandatory to provide this but it was good practice and showed the steps already being taken to address the issue.

·       The recent increase in inflation had an impact on both liabilities and investments. Diversification of assets help mitigate any impact of inflation.

·       Risk G5 was rated Red due to the possibly qualified audit opinion discussed under the earlier report on the agenda.

·       There was a new section on employer related risks.

During discussion the Committee noted a number of points, including:

·       That there will always be some risks that you cannot avoid (you can only mitigate) and so a Green rating may not be achievable.

·       The risks around inflation and interest rates needed monitoring, in particular the relationship between the two. The Independent Adviser offered to rephrase risk F3 to clarify the issues

·       It was important to consider the risks in relation to performance of the London CIV as they were not performing well currently (although they had been an improvement). The Committee agreed this was an issue and asked officers to review the related risks in the register. Officers confirmed that they were in contact with London CIV and would report back. The Independent Adviser informed the meeting that he was in regular contact with the London CIV.

·       There was a suggestion that risk G4 (inappropriate or no decisions are made) was too low as ‘minor’ and should be updated to moderate and amber.

The Committee asked officers to consider the above points and agreed to note the report.

RESOLVED

1.    That the report be noted.

Ms Miriam Adams, Interim Head of Pensions and Treasury stated the report updated members of the Board and Committee, on changes to the Fund’s risk register and Risk Management Policy as at March 2023. Ms Adams provided an explanation for the risks listed at paragraph 3.3 to 3.13 and the remedial action taken. She explained the progress that had been made to the risks and referred to the table at paragraph 3.14 which summarised the total risks.

In response to comments and questions the following was noted:

·       Referring to the table at 3.10 and the risk register appended, Mr Thompson said there were 11 reds of which 9 had been converted to amber. He said most of them were showing ‘ongoing’ but did not state a deadline. He asked this to be reviewed with an indication of when they were likely to be completed.

The Pensions Board RESOLVED to:

Note the recommendations made to the Pensions Committee who will consider this report at its meeting of 3rd July 2023, that:

The Committee is recommended to:

1.    Note and comment on the detailed Risk Register (Appendix 1)