It doesn’t matter how large a pension fund is — a $42 billion U.K. fund, an $80 billion Australian system and a $715 billion Dutch giant are preaching the same message: a crisis plan is only as good as how many times you’ve rehearsed it.
The importance of planning for the unexpected was a key lesson shared by risk management experts on stage at Pensions & Investments WorldPensionSummit in The Hague, Netherlands, on Nov. 5.
On a panel titled “Tail events and tipping points: preparing portfolios for the extreme,” top risk management leaders from several pension funds discussed how their teams have navigated recent crisis periods. The risk leaders stressed preparation, including clarity around governance and adequate liquidity buffers, as key to managing through rocky times.
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