Our risk appetite statements outline the types and levels of risk that we’re prepared to accept. They set risk-taking boundaries and enable consistent risk-aware decision making.
Why we manage risk
We manage a wide range of risks to safeguard our members pensions. We take actions to ensure risks are kept within manageable limits.
What is risk?
Risk is the possibility that objectives will not be achieved. For example, that expected investment returns do not materialise or that members are not paid the pension amounts they are due on time.
Our risk framework
To protect our members’ pensions and investments, we have a comprehensive framework to manage the risks we face. This framework includes policies, processes and governance arrangements, all designed to identify, measure, manage and monitor risk across the business.
The USS Board has primary responsibility for the group’s risk management framework, but delegates the day-to-day activities associated with this. For example, the board delegates risk management responsibility for the scheme’s investment activity to our subsidiary, USS Investment Management Limited.
Our approach to risk management is embedded throughout USS as three key elements:
More information is provided in our annual Report and Accounts.