Read: Expert panel: How will CAPSA’s risk management guideline impact pension plan administrators?

With this in mind, here are some suggested tips for pension plan administrators that may be struggling to decide how best to improve their plan’s risk management and address the requirements of the CAPSA’s risk guideline.

1. Pension risk management is a journey

Pension risk management is a journey and not a one-time exercise. Plan administrators will achieve a better outcome by initially focusing on addressing any material risk management gaps that may exist than by attempting to immediately create a perfect risk management framework. A plan’s risk management practices can and should be improved over time, so it’s important to avoid the temptation to strive for perfection at the outset.

2. Good governance is key

Good pension plan governance is a prerequisite for effective pension risk management. It’s impossible to create and implement a robust risk management framework when there are significant gaps with a plan’s governance practices, such as poor documentation or a lack of clarity of the roles and responsibilities associated with overseeing and running the pension plan. Addressing any significant governance gaps should be a key component of improving the risk management of a pension plan.........

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