LCP Sonar, our dynamic risk profiling tool, helps you to identify and prioritise risk management in an integrated way, as well as showing you how you stack up against others.
For LCP Sonar 3.0 we took a step back and really challenged ourselves to consider what could go wrong for a pension scheme from a fundamental perspective, before creating a set of truly integrated measures to help you see the bigger picture.
We were conscious that all too often, integrated risk management began in silos (covenant, investment, funding, governance) and we think that’s the wrong way round.
Using LCP Sonar, you can quickly see a snapshot of key risks for your scheme. We tell you which risks we think you should be focussing on first, based on the metrics we have developed, and we show you how you stack up against others. LCP Sonar offers a refreshed focus on risk management and is consistent with the increasing expectations of The Pensions Regulator, helping you to successfully engage in this complex area and to prioritise your risks effectively.
How we can help
Running a pension scheme can involve hoping for the best but preparing for the worst. Preparation is key. When you hit a bump in the road (and there have been plenty over the years) the amount of preparation you have done will determine how far you get thrown off course.
Each pension scheme has a unique set of circumstances and your approach to risk management should be designed to work best for you. LCP Sonar, our risk profiling tool can help you to:
- Consider what your contingency plans are in the key risk areas
- Develop your own bespoke metrics and/or dashboard to track your risks with actions taken if certain triggers are breached
- Design a de-risking framework or more detailed contingency plans eg in the event of your covenant weakening
- Consider how your scheme stacks up in future possible scenarios
Why is risk management important to pensions schemes?
- For a better understood and controlled journey
- To allow trustees to focus on what is important helping them to make better decisions
- Fewer surprises as schemes mature and get nearer their endgame
- Increasing regulatory scrutiny and pressure to manage risks effectively. This includes the Pension Regulator’s new funding code and the single Code of Practice expected to be released during 2022.
If you would like a demo or to get in touch about how LCP Sonar could help you please reach out to LCP Sonar team listed below.
Our latest thinking
How we can help
We help trustees understand and monitor the employer covenant.
We take a practical and cost effective approach to helping trustees improve pension governance.
We help you get your investment strategy right to ensure good member outcomes in your DB and DC schemes.
We help you identify and implement strategies that will help you achieve your objectives
We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.
We help trustees achieve their strategic goals, with solution-led, appropriate advice.
We help our clients identify technological and data led solutions to solve the issues they face. From risk modelling for pension clients to providing insight to the energy market, we use the latest cutting-edge technology to help clients make better and more informed business decisions.