Agenda item

This report presents the updated Risk Register for the Brent Pension Fund Pensions Administration Service.

Sawan Shah (Head of Finance, Brent Council) introduced a report, presenting the updated Risk Register for the Brent Pension Fund Administration Service.  In considering the report, members noted the changes previously agreed in relation to the updated Risk Strategy (attached as Appendix 2 to the report) and key changes made to the Risk Register (attached as Appendix 1 to the report) since the previous update which included:

·             Item 1.1 Business Continuity – the update of supporting commentary

·             Item 3.1 Scheme Data – an expansion of controls listed

·             Item 3.2 Record Keeping – the update of a supporting comment to reflect recent data cleanse activity

·             Item 3.5 Pensions Payroll Migration – the update of a supporting comment to reflect recent activity

·             Item 3.6 Re-enrolment – the update of a supporting comment to reflect the Re-enrolment exercise currently taking place

·             Item 4.2 Annual Benefit Statements – the risk of likelihood being lowered and an updated comment following the 2024 exercise

·             Item 4.4 Monthly contribution returns – the update of a supporting comment

·             Item 5.4 Governance – the update of controls listed

·             Item 5.5 Discretions – an update of the risk outline and supporting comments

·             Item 6.5 Annual Audit – the update of a supporting  comment to reflect progress on the audit of the financial statements

In thanking Sawan Shah for the overview, the Chair welcomed comments from Board members. Contributions, questions, and responses were as follows:

·             Further details were sought on the potential impact arising from the outcome of the US Presidential election in relation to the geographical and economic risk in relation to investments (Risk 6.2) included on the register.  In response, assurance was provided of the work being undertaken by officers in conjunction with the Fund Investment Advisors to actively monitor these impacts and adjust the Fund investment strategy as required.  Members were also reminded that the Fund held a well-diversified investment portfolio, which included a mixture of growth, income, and protection assets based on professional advice and was therefore able to take a longer term view in relation to investments avoiding over exposure in any one specific market or to shorter term market volatility with quarterly updates on investment performance also provided for the Pension Fund Sub Committee and Board subject to regular monitoring.

·             Further clarification was sought on the integration between the Risk Strategy and Risk Register as a means in supporting the scheme manager in identifying and managing scheme risks and how this was incorporated within the Register presented to the Board including the details provided on the strategy (in terms of controls and mitigations) in place to control those issues identified with the highest risk ratings on an ongoing basis such as cyber security.  In response, members were advised that the Strategy had been subject to a detailed review and update with the outcome and changes made as a result presented to the Board at their previous meeting in September 2024,.  In providing further clarification on the way in which risks included within the register were assessed and scored in relation to their impact and likelihood based around financial, service and reputational impact members were advised of the process and strategy followed to ensure these risks were kept under continual review recognising that whilst possible to mitigate against particular aspects often the nature and inherent likeliness of the risk would mean they would need to remain ranked as high.

The Board was advised that comments on presentation of the Register would continue to be welcomed including on the review of any risk classifications or if it was felt any new or emerging risks needed to considered.

The Board welcomed the report, and as no further issues were raised, it was RESOLVED to note the overall report, including the key changes to the Risk Register (as detailed in Appendix 1 and set out in section 3.2.4 of the report).