Chris Norton, Strategy and Commissioning Manager (Treasury, Pensions, Audit, Insurance, and Risk) presented this report which provided a consolidated single risk register, including covid-related risks. When the risk register had been presented to the Pension Fund Investment Subcommittee in March 2021, the Pension Fund Investment Sub-Committee requested that the Covid risk line be split into two lines – one for investment and one for other Covid impacts, including impact on people and this change would be made before reporting risk monitoring in June. The Sub-Committee had also agreed to the idea of developing a formal risk appetite for the Fund during 2021/22.
In response to a question around the meaning of asset bubbles, Victoria Moffett clarified that this referred to a situation where assets dramatically rose in price over a short period that was not supported by the value of the product. At some point the implausible value would become noticeable and the value would crash back down, popping the bubble.
A typographical error was noted at risk 10 relating to climate change which should refer to UK stewardship code.
Members welcomed the single risk register and asked how the register was utilised. Chris Norton advised that the Pension Managers Coordination Group met monthly to consider key issues and one of the standing items on the agenda was the risk register and business plan action plan so that any changes required could be discussed. A key point was to ensure that any actions that the team needed to have regard to had a place in the single action plan that was more simple and easy to use.
Resolved – that the Local Pension Board noted the risk register appended to the report.