Pension Funds: Strategic Assurance Plans
A strategic assurance plan mitigates risk
At the heart of a well-run scheme is a risk management framework, capable of responding to existing, new and emerging risks. Trustees of occupational pension schemes must establish and operate internal controls which are adequate for the purpose of ensuring the scheme is administered and managed in accordance with the scheme rules, and in accordance with the requirements of the law. This, in turn, should mitigate the risks identified.
The key to making sure that the controls mitigate risks are operating is a strategic assurance plan. This provides pension scheme trustees with confidence that the processes and procedures in place for managing the schemes risks are reasonable.
Benefits of developing a strategic assurance plan
- Assists trustees to create improvements in their internal controls and processes rather than a burdensome tick box exercise
- Enhances the risk management process
- Provides an oversight on the governance processes of the scheme
- Strengthens the overall governance framework
Through our knowledge of pension schemes and developing previous strategic assurance plans we can guide trustees through the process of setting up strategic assurance plans for their own schemes, providing them with confidence that the controls identified to mitigate key risks within the risk register have been tested to certify they are operating effectively.