Scenario Analysis: an essential tool for DB pension schemes
Adopting Integrated Risk Management in your scheme’s decision-making processes can be a difficult task, especially when it comes to allowing for your scheme’s single biggest risk concentration: its covenant.
Below we illustrate how scenario thinking can be used to tackle this problem, and how it can help to shape a holistic risk management strategy. You may even want to ask yourself – how would my scheme and sponsor fare in a ‘hard Brexit’ scenario?
Back to the home page.