Technology & innovation


LCP Sonar, our risk profiling tool, benchmarks your scheme against other pension schemes, covering covenant, funding and investment risks. 

After a successful first few months using LCP Sonar to help many of our clients evolve their approach to risk management, we are delighted to launch the next update of LCP Sonar which features updated data and improved metrics.

Using LCP Sonar, you can quickly see how your scheme’s risk profile compares to others and think about the key risks for you. 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 and the expected IORP II requirements

Did you know?

  • 40% of LCP’s clients have some form of legally binding contingency plan in place
  • 65% of schemes are currently in a negative net cash flow position (excluding income from invested assets)
  • On average, LCP clients hedge 70% of their funded liabilities

LCP Sonar has given us these, along with many other, insights into trends for our clients.

If you would like a demo or to get in touch about how LCP Sonar could help you email the LCP Sonar team here

How we have helped our clients

Reinvigorating risk management

Reinvigorating risk management

How we refreshed and reinvigorated our client’s approach to managing their integrated covenant, investment and funding risks, using LCP Sonar.

Our LCP Sonar experts

Our latest thinking

How we can help

Covenant consulting

We help trustees understand and monitor the employer covenant.

Covenant consulting

We take a practical and cost effective approach to helping trustees improve pension governance.

Meet some of our experts
Strategic journey planning and risk management

We help clients identify, manage and monitor pensions risks in an integrated way.

Meet some of our experts

Our investment team works with trustees and sponsors of pension schemes to help them maximise their investment returns, while ensuring risk is well managed.

Meet some of our experts
Pensions strategy solutions

We help you identify and implement strategies that will help you achieve your objectives

Meet some of our experts