Private Pensions are becoming an increasingly important part of retirement income. Therefore, the quality and the effectiveness of pension funds supervision is getting more and more critical, as well as challenging. In order to achieve effective supervision, supervisory authorities need to expand risk analysis and develop emerging risk capacities. Thus, risk-based supervision (RBS) is imperative to be adopted along with corresponding risk-assessment methodology, that incorporates both micro and macro perspectives.

Strategically selected RBS techniques can result in effective resource allocation, where assets are directed in a way to target the risk exposures that are of greatest concern to the supervisory authority. Hence, RBS is deemed to be a more flexible and dynamic process, that allows for greater efficiency in the event of resource scarcity.

This Pension Funds Supervision course has been specifically designed to equip its participants with in-depth knowledge and essential skills to successfully employ RBS techniques.

COURSE OBJECTIVES

At the end of the Pension Funds Supervision course, the participants will be able to:

• Possess comprehensive understanding of pensions schemes, funds and plans worldwide
• Compare and employ global best practices of risk-based pension fund supervision and good governance
• Develop sound decision-making skills for strategic resources allocation and supervisory strategies
• Employ various risk techniques for pension fund risk management
• Set appropriate controls and measures against identified risks
• Analyze various situations and circumstances and foresee possible outcomes
• Effectively and efficiently handle and manage senior roles and responsible related to risk-based pension fund supervision and stay relevant and competitive for the industry.

WHO SHOULD ATTEND

This Pension Funds Supervision course is suitable to a wide range of professionals but will greatly benefit:

• Professionals and executives involved in Pension Fund Supervision and Governance
• Specialists and Policy Makers involved in risk identification, assessment and management.
• Legal and Financial Advisors concerned with Pension Risks and related disputes
• BPO Pension Schemes Administrators
• Public Sector Pension Scheme Legislators and Officials at the local and national level
• Pensions Managers and Pensions Scheme Managers
• Pension Officers and Registrars
• Employee Benefits Directors and Managers
• Anyone interested in Risk-Based Pension Fund Supervision and Governance

Course Outline

 Risk and Regulations for Pension Industry

• The Broad categorization of pension industry risk: Portfolio, Agency and Systemic Risks
• Introduction to Pension Fund Regulatory Mechanism
• Regulatory Requirements on Risk Management Architecture
• Licensing, Governance and Investment Rules
• Independent Custodian, External Audits, and Disclosure Requirements
• Guarantees, Minimum Capital, and Reserves
• Cost & Fee Regulations and Sanctions

 Introduction to Risk-Based Supervision of Pension Funds

• The financial position of the organization, risk level intensity and supervision scope
• Shifting the focus to high-level controls and governance
• Strategic allocation of time and resources: employing proactive approach
• Common objectives and elements of pensions fund RBS design
• Key focus areas of RBS model
• Employing pension fund RBS-Application and adaptation of models
• Collecting data
• Supervisory board, staff, industry and power.

Analyzing Risk Landscape

• Risk-Based Solvency and Risk Scoring Methods
• Risk Based Capital Rules
• Funding risk
• Solvency risk
• Surplus risk and contribution risk
• Counterparty credit risk
• Interest rate mismatch risk
• Longevity Risk Hedging and Transfers
• Systematic Risks and Achievability 

 Actionable Tools of RBS

• Setting objectives and risk focus for supervisory authorities
• Identifying, mapping and weighting risks
• Resource allocation decision based on risk assessment
• Quality assurance
• Maximizing the value of scarce resources
• Foreseeing problems timely
• Challenges in pension fund RBS implementation

  Managing and Mitigation Risks

• Operation and structure of internal risk governance processes
• Considering risk-based approach in organizational structure
• Management controls and compliance
• Setting appropriate procedures and controls
• Designing and adopting risk management systems
• Independent reviews
• Sponsors and financial support