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This presentation
- explores the application of Enterprise Risk Management (ERM) to pension funds
- highlights developments in the EU that may encourage greater application of ERM to pension funds
- summarises a way of modelling one aspect of ERM relevant to many pension funds, namely the contribution that the 'sponsor covenant' might make to the robustness of the pension promise being provided via the pension fund.

[as pdf]

Slides

1	Entity-wide Risk Management for Pension Funds
2	Agenda
3	Agenda
4	Definitions of Enterprise Risk Management (ERM)
5	Definition of ERM in flowchart form
6	‘Enterprise’ versus ‘Entity-Wide’ Risk Management
7	ERM versus other types of risk management
8	Three pillar structure of modern regulatory frameworks
9	Effective entity-wide risk management for pension funds
10	Clarity / transparency and coverage
11	Some say: ERM is for insurance, not pensions
12	Characteristics of successful ERM frameworks
13	Typical ERM framework for large financial firm might include
14	Typical ERM framework for a non-financial firm
15	Governance challenges for pension funds include
16	Agenda
17	IORP II Directive Proposal
18	Typical balance sheet presentations
19	Security mechanisms
20	Agenda
21	Analysing the sponsor covenant: a first step
22	Ideally need a forward-looking analysis
23	Valuation of sponsor covenant
24	Maximum available sponsor support
25	Presentation of results
26	Pension protection schemes (PPS)
27	Summary
28	APPENDIX A: Pension fund security mechanisms
29	Tangible assets
30	Sponsor covenant
31	Conditional benefit structures
32	Conditional benefit structures (ctd)
33	Pension protection schemes (PPSs)
34	Appendix B: Modelling example
35	Model structure
36	Including asset volatility in model
37	Quantifying value split between sponsor and members
38	Important Information

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