Archived Insight | October 8, 2018

Operational Risk May Be a Challenge for Your Retirement Plan

In today’s environment, market risk tends to receive the most attention from the media and from stakeholders, but managing operational risk has become more important as plans have grown in size and complexity.

operational risk

Why operational risk is such a threat

Many experts believe operational risk, rather than market risk, is the leading threat to a plan’s reputation due to the breadth and complexity of the individual risks in this category.

For defined contribution plans, operational risk encompasses potential losses attributable to failures in Internal Revenue Code (IRC) compliance, participant financial reporting, transaction processing, data security, technology, business continuity and vendor management

Have questions? We have answers.

Start a conversation today about how we can help.

Contact Us

Getting a handle on operational risk

Effectively managing operational risk may lead to improved service quality, reduced costs, improved participant decision making and strengthened compliance. A first step is adopting a framework that includes:

  • Governance structure
  • Audits and assessments
  • Management of cybersecurity risks
  • Peer reviews and benchmarking
  • Comprehensive investment policy
  • Key performance and risk measures

Our team can help you reap these benefits by coming up with a plan that will reduce your operational risk. 

See more insights

Senior Woman Uses A Laptop At Home

Meeting the Moment: Helping People Navigate Change at Open Enrollment

Discover practical open enrollment communication strategies that help employees understand options, make informed decisions and take action.
Female Pharmacist Explaining A Medication And Prescribing Medication To A Customer In The Pharmacy

Medicare Part D Demonstration Program Will End on 12/31/26

Learn what the early end of the Medicare Part D Demonstration program means for premiums and retiree health plans.
Senior Management Discussing Details While Planning In An Office

Advice for Changing a Pension Administration Software Vendor

Learn three key considerations for choosing a pension administration software vendor and avoiding costly surprises.

This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.