TPR publishes new quick integrated risk management guide for smaller schemes

02 December 2016

The Pensions Regulator (TPR) has published a new quick guide to integrated risk management aimed at trustees of smaller defined benefit schemes.

Integrated risk management (IRM) enables trustees to better assess, prioritise and manage their employer covenant, investment and funding risks.

Andrew Warwick-Thompson, Executive Director of Regulatory Policy at TPR, said “Our new step by step quick guide sets out how trustees of smaller schemes, who may have limited resources, can benefit from IRM and how they can get started.

“IRM is about more than merely understanding risks. It gives trustees a holistic understanding of their scheme’s sensitivity to risk and enables them to agree a sustainable plan with the employer to help deliver promised member benefits. It’s also a central feature of our annual funding statement and our DB code of practice which sets out what we expect from trustees.”

The new quick guidance on IRM provides an overview of the main points, and is designed to be used in conjunction with TPR’s full IRM guidance.

• A commitment to IRM can result in the following benefits:
• Better decision making resulting from greater trustee and employer understanding of risks.
• Better working relationships between trustees and employers because of open and constructive dialogue.
• More effective risk assessment, contingency planning and monitoring arrangements resulting from an evidence-based focus on the most important risks.
• Greater efficiency due to more effective use of trustee, employer and adviser resources

In addition, trustees may find it helpful to use the guide and key considerations as a starting point for board discussions or in meetings between trustees and employers.

Press release

Full guidance

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