Risk Management Framework requires Pension Funds to identify, mitigate, monitor and report financial, operational and compliance risks. Each Pension Fund must maintain a formal risk management framework integrated with Scheme governance. It must identify, assess, mitigate, monitor and ... Summary
Referred In :
International Financial Services Centres Authority (Pension Fund) Regulations, 2026
Risk Management Framework requires Pension Funds to identify, mitigate, monitor and report financial, operational and compliance risks.
Each Pension Fund must maintain a formal risk management framework integrated with Scheme governance. It must identify, assess, mitigate, monitor and report risks throughout the investment lifecycle, with oversight by the Compliance Officer and reporting to senior management or the Board. Controls must address market, credit, liquidity, operational and compliance risks through diversification, hedging, liquidity buffers, internal controls, audits and legal compliance reviews. Regular stress testing and scenario analysis must assess resilience under adverse conditions and support corrective measures, including portfolio rebalancing, additional hedging, increased liquidity and contingency planning.
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