Chris Norton, Strategy and Commissioning Manager (Treasury, Pension, Audit & Risk) presented this report which provided an update on the risks to the Fund and actions taken to manage them. To simplify the management of the registers, the general risk register and the COVID-19 risk register had been consolidated into one document with Covid-19 featuring in its own right. It did not provide a detailed action plan and where further actions were noted, these were recorded in the Single Action Plan appended to the business plan.
The report also floated the idea of introducing a risk appetite for the Fund and the potential to develop a draft assessment in this regard. The Sub Committee felt that due to the nature of the Fund (i.e. paying pensions) it was important to be low risk in many regards and welcomed proposals to a future meeting.
In response to a comment from Councillor Neil Dirveiks, it was agreed that the risk register would be adjusted to include two lines for Covid, one relating to working assets and one for investment assets.
Bob Swarup, Independent Advisor, offered advice in terms of deciding what type of risk would result in reward as opposed to those that would not and draft an assessment from that starting point. He also suggested that in terms of monitoring risk, the Sub Committee could maximise its impact by proactively focusing on one or two key risks as well as having a good sense of emerging risks.
1. That the Pension Fund Investment Sub Committee noted the risk register and action plan attached to the report.
2. That the Pension Fund Investment Sub Committee approved the risk register and action plan attached to the report subject to the Covid risks being split in terms of working assets and investment assets.
3. That the Pension Fund Investment Sub Committee welcomed the draft Risk Appetite and supported work being undertaken to formalise a risk appetite statement for approval at a future meeting.