Guideline for Risk Management for Plan Administrators

The document is a guide released by the Canadian Association of Pension Supervisory Authorities (CAPSA) detailing Guideline No. 10, which focuses on risk management for pension plan administrators. It outlines a systematic approach for identifying, evaluating, managing, and monitoring material risks that pension plans may face. The Guideline emphasizes the importance of establishing a risk management framework that includes specific objectives related to benefit security and affordability. It presents a four-step risk management process: identifying risks, evaluating risks, managing risks, and monitoring risks. Additionally, the Guideline addresses specific risk areas such as third-party risks, cyber security, investment risk governance, and environmental, social, and governance (ESG) issues. It also includes appendices with resources like a risk table and sample heat map. Administrators are encouraged to assess their current practices and implement necessary changes by the specified deadlines to meet fiduciary duties.