The board ensures that the risks faced by the social security institution are properly identified and managed or averted. These risks may arise in various forms, including but not limited to strategic, operational, political, economic, regulatory, geographic and demographic risks.
Guideline code
GG_01100
Mechanism
Mechanism
- The management should periodically provide the board with risk studies and reports, and recommend risk management policies and measures for adoption.
- The board should adopt the necessary policy measures to minimize the long-term and short-term impact of these risks on: (a) the financial sustainability of the scheme; (b) fund investments; (c) member contributions and member benefits; and (d) the human resources and the ICT infrastructure required for administering the programme.
- The governance framework defined by the ISSA Guidelines on Good Governance may serve as a reference point to identify the potential areas that could be impacted upon by the various risks faced by the institution.
Section B.2 provides more guidelines on operational risk management, with corresponding structures and mechanisms to facilitate the application of the guidelines.
Structure
Structure
- The board should require the management to identify and study the risks faced by the institution, to propose policies and implement board-approved measures to manage or avert the risks.
- The board, as a whole or through a committee or subgroup of the board, should exercise oversight on the conduct of these studies by the management.
- The board should ensure that the management has the capacity to anticipate and evaluate any and all risks that the institution may face.
Title HTML
Guideline 8. Risk management
Type
Guideline_1
Weight
15