Risk management

An extensive risk register is maintained covering a wide range of issues across investments and benefit operations. The register is subject to internal review each quarter and a summary is reported to the Pensions Committee.

We’re committed to a strong control environment to ensure that risks are identified, understood, managed and monitored appropriately. The risks faced by the LPF Group and the Fund change over time and ongoing management of risk is crucial. We have a compliance policy and each manager’s responsible for ensuring compliance within their area of responsibility.

Most significant risks 2018/19

The most significant risks (taking account of controls), as shown in the Annual Report and Accounts 2018/19, were as follows.

Description Impact Likelihood Risk score
Adverse investment performance leading to pressure on employer contributions 5 4 20
Adverse movement against non-investment funding assumptions leading to pressure on employer contributions 5 5 25
Failure of an employer to pay contributions causes either a significant fall in funding level or requires higher contributions from other employers 4 4 16
Failure of IT leading to poor ICT responsiveness, legal exposure and cost/risk implications 8 5 40
Colleague resource within the fund insufficient to carry out core tasks in conjunction with active or anticipated projects. 6 5 30