Advanced Executive Assistant Masterclass Series 3

Risk-Based Pension Funds Supervision and Governance

Directing supervisory attention and resources to where the risks are greatest

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Platform:
Online
In-class
Revised and Updated: 26 October 2026
Date Venue Duration
13 - 15 January 2027 Dubai, UAE 3 Days
14 - 16 April 2027 Live/Online 3 Days
21 - 23 July 2027 Sandton, Gauteng 3 Days
14 - 16 September 2027 Sandton, Gauteng 3 Days

Course Introduction

Pension funds hold the long-term savings of millions of members, and failures in governance, investment, or administration can wipe out those savings. Supervisors cannot examine every fund in equal depth, so effective supervision depends on knowing where the greatest risks lie and focusing attention and resources there. This is the idea behind risk-based supervision, which supports early detection of emerging problems, makes better use of limited supervisory resources, and encourages funds to manage themselves well. 

 

This five-day course takes participants step by step through risk-based supervision of pension funds, from identifying and assessing the main risks, through the regulatory components that support supervision and the design of a supervisory framework, to supervisory response, risk mitigation, and the governance mechanisms that protect members. It draws on international good practice, including the OECD and IOPS guidance on pension supervision, and on the experience of supervisors in Southern Africa and elsewhere. 

 

Through case studies, practical exercises, and group work, participants gain the knowledge and tools to implement and oversee risk-based supervision, build quality assurance into each stage, and strengthen governance in their own funds or institutions. 

Course Objectives

By the end of this Risk-Based Pension Funds Supervision and Governance  course, participants will be able to: 

  • Explain risk-based supervision as applied to pension funds, from risk identification to mitigation and supervisory response 
  • Make informed decisions on the allocation of supervisory resources, focusing on the areas of greatest risk 
  • Develop and review the policies, procedures, and documentation used in pension fund supervision 
  • Analyse data to identify risks and monitor them over time 
  • Apply quality assurance to each stage of the supervisory process 
  • Describe the main regulatory components that support supervision, such as licensing, governance, investment rules, custody, audit, disclosure, funding, fees, and enforcement 
  • Support the development of a forward-looking, resilient supervisory and governance culture 
  • Guide and train colleagues on the principles and processes of risk-based supervision 
  • Draw on international and regional practice to work effectively in different regulatory environments 
  • Build the analytical, reasoning, and prioritisation skills needed for senior supervisory and governance roles

Who should attend?

  • Pension Regulators and Supervisors 
  • Senior Executives and Managers responsible for pension fund oversight 
  • Board Members and Trustees of pension funds 
  • Risk Managers and Compliance Professionals 
  • Legal and Financial Advisers engaged in pension fund matters 
  • Human Resource Professionals involved in supervisory staffing and appointments 
  • Policymakers involved in pension fund governance and risk management 
  • Any professional seeking expertise in the risk-based supervision of pension funds 
Audit, Risk and Governance courses

Training Methodology

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.

Training Outline

The course instructor may adjust the programme for technical reasons, but the course objectives will always be met. The ten modules are spread over five days, two per day.

Day 1 — Risks and the Regulatory Framework
Module 1: Key Risk Categories in the Pension Industry
  • Portfolio risks: market, credit, liquidity, inflation, currency, concentration, and valuation of unlisted assets
  • Agency risks: conflicts of interest, fraud and misuse of assets, weak trustee capability, and outsourcing to administrators and managers
  • Systemic risks: contagion, sovereign exposure, herding, and the size of pension assets relative to the market
  • Other risks: funding and sponsor risk in defined benefit funds, member outcome risks in defined contribution funds (low contributions, high charges, poor default strategies, early withdrawals), longevity, operational and cyber risk, and climate and other ESG risks
  • Practical Exercise: build a risk map for a sample defined benefit and defined contribution fund, and rank the main risks
Module 2: Regulatory Components in Pension Fund Management
  • Licensing and registration requirements
  • Governance structures: fit and proper tests, trustee training, and board accountability
  • Investment rules: prudent person and quantitative limits, with South Africa's Regulation 28 as an example (confirm current detail)
  • The role of independent custodians and external auditors
  • Disclosure and reporting requirements, and member communication
  • Minimum capital, funding, and reserve standards
  • Regulation of costs and fees
  • Sanctions and enforcement mechanisms, including intervention in failing funds; complaints handling and member redress
  • Practical Exercise: match each risk from Module 1 to the regulatory tool that best addresses it, and identify the gaps

Day 2 — Objectives and Framework of Risk-Based Supervision
Module 3: Objectives of Risk-Based Supervision
  • Assessing the financial health and governance of pension funds
  • Tailoring supervision to risk levels, with proportionality and consistency
  • Optimising the use of supervisory resources
  • Fostering a proactive and confident supervisory environment
  • Practical Exercise: compare a rules-based and a risk-based supervisory approach for the same group of funds
Module 4: Establishing a Risk-Based Supervisory Framework
  • Model adaptation and application: using the IOPS Toolkit for Risk-Based Pension Supervision (preparation, quantitative risk assessment tools, identifying risks, risk mitigants and scoring, and supervisory response)
  • Data collection and analysis: data templates, data quality, and validation
  • Supervisory independence, powers, and institutional restructuring
  • Staff competencies and industry engagement
  • Risk-based solvency and systemic risk considerations
  • Practical Exercise: select and adapt a risk-based supervision model for a sample supervisory authority, given its legal powers, data, and staff

Day 3 — Pillars of Risk-Based Supervision and Building the Framework
Module 5: Pillars of Risk-Based Supervision
  • Quantitative requirements and capital adequacy: funding levels, stress tests, and sponsor support
  • Supervisory response processes: escalation and the range of tools from early warning to enforcement
  • Market discipline and transparency
  • Practical Exercise: design an escalation ladder for a fund whose risk score is rising
Module 6: Building the Supervision Framework
  • Setting supervisory objectives and risk focus
  • Risk identification and mapping methodologies, including risk matrices and scoring
  • Quality assurance processes: peer review, calibration, and challenge of risk scores
  • Risk-weighted resource allocation: on-site and off-site work, thematic reviews, and annual supervisory planning
  • Practical Exercise: score the risks of five sample funds and prepare a risk-weighted supervisory plan for a year

Day 4 — Benefits and Challenges
Module 7: Benefits of Risk-Based Supervision
  • Efficient use of scarce resources
  • Improved early warning and issue identification
  • Incentivising sound management practices in pension funds
  • Measuring results: indicators of supervisory effectiveness and member outcomes
  • Practical Exercise: draft a short business case for adopting risk-based supervision, for a sceptical board or minister
Module 8: Challenges and Solutions
  • Balancing simplicity with complexity
  • Addressing data and knowledge gaps
  • Ensuring forward-looking and comprehensive risk assessments
  • Integrating risk-based approaches into governance and culture
  • Managing organisational change and accountability
  • Typical regional constraints: small supervisory teams, staff turnover, high inflation, concentrated sovereign holdings, and political pressure
  • Practical Exercise: identify the three most serious obstacles to risk-based supervision in your own setting and agree practical responses

Day 5 — Risk Mitigation, Regional Practice and Capstone
Module 9: Risk Mitigation Strategies
  • Strengthening governance bodies and management controls
  • Cultivating a compliance-driven culture, including conflict of interest and whistleblowing arrangements
  • Enhancing operational management and risk systems, including outsourcing and cyber resilience
  • Ensuring robust independent review processes: internal audit, actuarial review, and external audit
  • Assessing the roles of administrators, sponsors, and financial backers
  • Practical Exercise: review a sample fund's governance and controls and propose mitigation measures for its top five risks
Module 10: Regional Practice, Technology and Capstone Workshop
  • International guidance: the IOPS Principles of Private Pension Supervision and their revision (the 2024 consultation draft proposes 13 principles, including risk-based supervision, proportionality, and governance; confirm final status), and the OECD Core Principles of Private Pension Regulation
  • Regional practice: supervisory approaches in South Africa and other Southern African countries; for example, South Africa's cyber security and cyber resilience Joint Standard for retirement funds, with its compliance deadline of 1 June 2025 (confirm current detail)
  • Supervisory technology and data analytics, and climate and ESG risk monitoring
  • Defined contribution supervision: focusing on member outcomes, charges, and default strategies
  • Crisis preparedness for market shocks, pandemics, and disasters
  • Review of key learning outcomes, and certificate of completion
  • Practical Exercise: capstone: present a risk-based supervision plan for a sample pension sector to a mock board of regulators

Terms and Conditions

  • Workshop fees are payable at least one week before the course starts

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FAQs – Risk-Based Pension Funds Supervision and Governance

Master risk-based pension fund supervision and governance, learning regulatory frameworks, asset-liability matching (ALM), investment risk management, fiduciary duties, and stakeholder accountability for retirement fund trustees and financial regulators.

What topics are covered in the Risk-Based Pension Funds Supervision and Governance course?
The course covers risk-based supervisory frameworks, pension fund governance structures, fiduciary duties of trustees, risk identification and assessment, asset-liability management, investment oversight, and regulatory compliance metrics.
Who should attend this Risk-Based Pension Funds Supervision training?
This training is designed for pension fund trustees, principal officers, pension scheme regulators, risk officers, compliance managers, internal auditors, and financial sector supervisors responsible for fund governance.
How does this course enhance pension fund oversight and fiduciary management?
Delegates learn how to shift from reactive compliance to proactive, risk-based supervisory models, evaluate fund solvency and liquidity, assess operational risks, and safeguard member contributions and retirement benefits.
Will delegates learn how to evaluate investment risk and asset-liability matching?
Yes. The curriculum explores analyzing fund investment portfolios, evaluating risk-adjusted returns, monitoring asset manager performance, and establishing sound asset-liability matching (ALM) policies.
Does the masterclass address regulatory reporting and supervisory interventions?
Yes. Practical sessions cover developing risk profiling frameworks, conducting supervisory stress testing, preparing statutory regulatory returns, and handling early-intervention supervisory actions for distressed funds.
Why is risk-based governance critical for retirement funds?
Implementing risk-based supervision ensures early detection of financial risks, protects scheme assets against fraud or mismanagement, promotes trustee accountability, and maintains public trust in the retirement industry.

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