Considerations in Managing a Successful Risk Strategy

Join us at the Pension & Investments Canadian Pension Risk Strategies Summit, May 5th, at the Four Seasons Toronto. The summit will provide an overview of growing financial risk and increased market volatility of plan liabilities. Top experts will share their strategies for retirement plans considering whether to undergo a risk transfer transaction or to incorporate an LDI strategy to help improve the plan’s funded status.

From 9:40 a.m. to 10:30 a.m., Martin Leclair, Vice President at Proteus, will be part of the panel discussion regarding considerations in managing a successful risk strategy. He will be joining Duncan Burrill from the CBC Pension Plan and William da Silva from Aon Hewitt.

Panel Discussion: Important Considerations in Managing a Successful Risk Strategy

The focus in any good risk management approach is initially on asset strategies like liability-driven investing (LDI) and optimizing return-seeking strategies. However, you should not lose sight of other key considerations. It can be quite a daunting task for you and other top executives in charge of the risk strategy to shift focus from asset management to broader pension de-risking strategies. It’s often a complex process that requires meeting many fiduciary and regulatory requirements that you may have overlooked, until now.

This panel will provide some of the key considerations that should be taken into account:

Fiduciary obligations: Delegation of duties to external money managers doesn’t take care of all fiduciary responsibilities. Understand why it’s important to know how to ask tough questions about metrics, derivatives or other risk control strategies.

Monitoring: As conditions change, adjustments might be warranted. How often should the plan’s exposure to risk factors be checked?

Regulatory compliance: Once your plan’s risk profile has been established, how should you prioritize on the likeliness of an adverse event occurring and the impact of that event on your plan?

Legal Issues: In any de-risking strategy, plan sponsors should understand any legal risks that might be present and how to eliminate or mitigate these.

Transparent communication with investment board/committee: What modes of communication is best for sending timely, accurate messaging to board members?

To see the full agenda, ’click here'.