Why is Risk Management important?
In today's rapidly evolving business landscape, effective risk management is crucial for all organisations. Ensuring the longevity and success of a company requires a proactive approach to identifying, assessing, and mitigating potential risks that could disrupt operations or compromise assets.
By prioritising risk management, organisations not only safeguard their financial health but also maintain stakeholder confidence and adhere to regulatory compliance. This strategic focus enables companies to navigate uncertainties and seize opportunities with greater confidence, securing a competitive edge in their respective industries.
One organisation that saw the need for better risk management in their organisation was Royal Mail Pensions.
Who are Royal Mail Pensions?
The Royal Mail Pension Plan is managed by a Trustee company called Royal Mail Pensions Trustees Ltd. Their executive function as a company is to look after the pension schemes of Royal Mail, ensuring that the money invested by the members in Royal Mail is safeguarded.
Why did Royal Mail Pensions rethink their risk management?
Royal Mail Pensions sought a more effective risk management strategy to confidently navigate the evolving regulatory landscape. Managing of over £14 billion in assets means Royal Mail Pensions Trustees Ltd needs to be dedicated to safeguarding members' investments and ensuring compliance with legislation, regulation, industry codes, and high corporate governance standards. Their responsibilities encompass investment, governance, finance, and administration, presenting numerous challenges.
Peter Wilson, Finance, Risk & Investment Operations Consultant for Royal Mail Pensions explains. “We have an audit and risk committee, administration committee, funding committee, and an investment committee. These committees then all report to a central Board. Essentially, we had to start from scratch as every committee and Board would have their own way of reporting risk. This was a tedious and arduous process.”
With the introduction of new regulations such as the Effective Systems of Governance by the Pensions Regulator, the traditional spreadsheet approach became insufficient for risk management. Effective Systems of Governance mandates an Own Risk Assessment, requiring pension funds to demonstrate effective risk management. This prompted Royal Mail Pension Plan to seek a more robust solution. OneAdvanced’s Risk Management system was recommended by a team member who had previously experienced its benefits. Following further evaluation, contact was made to implement the solution.
Why OneAdvanced Risk Management?
OneAdvanced's Risk Management platform is designed with organisational needs in mind. The user-friendly, intuitive software ensures seamless adoption. OneAdvanced’s platform allows organisations to capture, evaluate, and manage risks and opportunities of any kind in one centralised location under a single, flexible framework.
When Peter and his team engaged with OneAdvanced and began the implementation process, it was straightforward and seamless. This efficiency granted each committee more time to focus on important decision-making and risk management. With the Risk Management solution fully integrated into Royal Mail Pensions, the team could easily manage and track risks across different parts of the organisation. Transitioning from the spreadsheet approach enabled Peter to oversee a more efficient and professional risk management system.
“Now that we have a professional dashboard to show our risks, trustees are no longer focused on picking out the spelling mistakes, colour differences and cells not being level in spreadsheets. OneAdvanced’s Risk Management software is concise and makes it easy for the reader to focus on what they want rather than struggling with version control. The dashboard gives us more time to make necessary adjustments.” Peter Wilson, Finance, Risk & Investment Operations Consultant for Royal Mail Pensions.
Visit our Governance and Risk Management Solutions page to find out more and get in touch with our team.